I set up an LLC through one of those online formation services last week, and they keep pushing me to add a registered agent for like $120/year. Is this actually necessary or can I just skip it and use my own address? I work from a home office if that matters.
Business
My formation service says I need a registered agent but why?
You legally have to have a registered agent. The question is whether you want to be your own or pay someone else. If you use your home address, it becomes public record.
what they said. also good luck getting served papers in front of your kids if someone sues you
Skip the formation service upsell and just be your own registered agent for now. It's free and totally legal in most states. You just have to be available during business hours to receive legal documents. If you ever get big or move, you can switch later.
That $120 is basically a privacy fee. Your home address is already on your formation docs unless you paid extra for a virtual address. The registered agent address is the one that gets served. I pay a service because I don't want randos knowing where I live.
Also, some states require the registered agent to be physically present at the address during normal business hours. If you're a one-person LLC and you're out doing jobs all day, you might miss a lawsuit notification. That's how you get default judgments.
I didn't know about the public record part. That's a little creepy. I'm just a freelance handyman, not trying to have my address floating around.
You can use a PO box for the mailing address but the registered agent address has to be a physical street address.So you can't just use a PO box for that. Some people use their accountant's office or a UPS store with a real street address, but that gets iffy depending on the state
just wait till you find out about the annual report fees lol
The formation service is probably just trying to make an extra buck. You don't have to buy it from them. You can be your own agent or hire a cheaper one later. Don't let them scare you into it.
Not necessarily just an upsell. If you don't have a registered agent listed, the state can reject your formation or administratively dissolve you., So you do have to list *someone*. It just doesn't have to be a paid service.
I used my cousin's address for two years. He got a summons for a debt collection thing and had no idea what to do with it. It sat on his kitchen counter for a month. Don't be like me ngl.
That's exactly the scenario. A registered agent's job is to forward that paperwork to you immediately. If you're your own agent, you're assuming that responsibility. For a handyman with potential liability, it might be worth the $120 for peace of mind.
Alright, I think I'll just list myself for now and set up a separate mailing address. If things pick up, I'll revisit it. Appreciate the info.
Make sure you actually update the state if you move. The number of people who forget and then get dissolved is wild.