If you are anything like me, the word registered agent sounds confusing. It actually tripped me up so it’s time to pass along what I’ve learned.
In this post I will teach you:
- What a registered agent is
- Help you understand if you really need one
- How to find a registered agent
- How much you should pay
What Are Registered Agents?
A registered agent is a person or company that you can appoint to be your representative with a state. They can act as the “corporate address” for your company, which will provide you with an official mailing address and someone that can accept mail for you.
This is important because the government doesn’t want to go look for you if you are on a beach in Barbados sippin’ margaritas.
If the government needs to get a hold of you – like when you get sued, they need someone to hand-deliver mail to during business hours.
Registered agents are usually required by law when forming a corporation or limited liability company (LLC).
They can also be referred to as “statutory agents” or “agents for service of process.”
Do I Really Need One?
You don’t have to get a registered agent. You can be your own.
But…
This means that your address and name will be public. It also means that you need to be available to take mail.
When registering your LLC or organization with each state they will ask who your registered agent is.
You can either put your own name or hire someone to be your registered agent for you.
Plus, having a registered agent will allow you to change addresses and move around easily. I personally don’t like being chained to one address.
So How Do I Find One?
That’s the easy part! Registered agents are all over the place. Here are your options:
- Ask your attorney to be your registered agent
- Be your own registered agent
- Hire a company to do it for you (I use INCfile.com)
Make sure they are in your state!
Your registered agent must be in the same state as your LLC or Corporation.
Be sure they can receive mail during business hours and make sure they won’t go out of business anytime soon.
How Much Should I Expect to Pay?
The cost of a registered agent service can vary depending on the location, size, and type of company.
The average range is between $100 to $500 per year, with many companies charging in-between rates at approximately $300 per year.
It’s a good price if you are paying less than $200 per year.
It’s an even better deal if they open your mail, scan it and email it to you.
INCfile.com does this, that’s why I use them.
What’s next?
Hopefully, you are less confused and know what to do next.
If not, let me put it simply.
Start. Start your business today. Right now is a perfect time.
Go get your LLC, hire a registered agent, get your EIN, open a bank account, check for local permits and start selling.
If you want me to teach you how to do these things check out Vanader Business School.
Be good to future you
-Evan
