Whether you’re new to the real estate business or well-established, if you do business outside of your home state you’re going to need a registered agent. Learn more about this requirement and how to satisfy it below.
Why Is a Registered Agent Required For My LLC?
The purpose of the registered agent is to receive legal correspondence. So for example, if someone wants to sue your LLC, they’ll mail the notices to your agent and not your house.
A registered agent is your LLC’s point of contact for all legal matters in the state which it does business. The agent is legally responsible for all of your LLC’s tax and legal documents.
So, let’s say you formed an LLC in Delaware and you live in Florida. You would be required to get someone (it can honestly be anyone) who is a legal resident of the state of Delaware to be your LLC’s registered agent. However, there are some exceptions to this requirement.
A few states allow your LLC to be its own agent. And in most states, you won’t have to get an agent as long as you have a physical address in that particular state. (Don’t try to use a PO box!)
Also worth mentioning is that you can be your own agent.
Can I Be My Own Registered Agent?
Yes you can! But fair warning: If you decide to be your own registered agent, you will be legally responsible for all of your LLC’s tax and legal documents. This may cause you to miss an important piece of mail while you’re on vacation or sick, etc.
The advantage in having someone else be your agent is that it removes your legal liability. And in that sense, a registered agent is a form of asset protection. Hiring an agent should cost you between $40 and $75 per year online.
And don’t worry, they’re all the same no matter where you go. So you won’t have to compare anything except price when you shop around for an agent.
What Happens if I Don’t Get a Registered Agent?
If you don’t get an agent, you may be subject to fines and kept from entering into legal contracts or the state court system in the particular state that your LLC was formed in. Some states will even file criminal charges against you.
If you have any questions about registered agents and LLCs, feel free to ask me in the comments below. In the meantime, learn more about LLCs and the all new Series LLC structure.
If you still have personal questions or want to learn more about Royal Legal Solutions’ Registered Agent Service, contact us now.