Do you need to buy a registered agent service for your company?

Registered Agent services are not cheap. Many companies charge between $100 and $125 per year to act as your agent. Therefore, it is important that you know 1. Do you need a registered agent? and 2. Should I pay for one?

What is a registered agent?

Each state requires an LLC organized under its laws to have a registered agent (or resident, in some states) at a physical location within the state. The purpose is so that the government can deliver official documents to the LLC. The most likely documents are tax forms and notice of claims.

Basically, the Registered Agent is the place and the person within the physical jurisdiction of the State to whom the process can be served. The State wants a natural person and a place within its borders to whom it can go with taxes and laws.

If you are forming an LLC in the state where you do business, you can simply use your business office address. In this case, you are your own Registered Agent. This is the most common arrangement. Even if you operate your business out of your home, you can use your home address for official service.

When should you pay for a Registered Agent service?

If you do not have a physical location in the state where you formed your LLC, you will need to designate a resident/registered agent within that state to receive official documents.

Example: You live in Missouri, but formed your LLC in Nevada (there will be another post later on why this may or may not be a good idea). Nevada is going to want a registered agent that is located in Nevada in order to serve official documents, also known as lawsuits and tax notices (although Nevada does not have state income taxes, they do have business taxes, for example, on gambling). random). If you do not have a home or office in Nevada to receive these documents, you will need to hire someone to accept them on your behalf. This person is a registered agent.

Many incorporation companies will, for a fee, act as your registered or resident agent.