Hello everyone, a quick question… I have a new business associate (h…

Hello everyone, a quick question… I have a new business associate (here in Texas) who formed a (State of Delaware) LLC based on “guru advice” from some seminar he attended. (I would have told him NOT to waste the money on the guru hype, and …He already has paid the money) He pays $300 a year to the state of Delaware and … He is paying $60 a month for a servicing company in Delaware (to act as his registered agent) to use their mailing address. The state requires him to have a Delaware address. (Who can offer a suggestion? I have some thoughts about the answer and am looking for second opinions / your experience) Thanks! Mark

Ariella Webb: $60/month to use their mailing address???

Mila Montgomery: Are you asking for alternatives? Why not register as a foreign entity? P.O. Box, etc….

Rowan Hill: Its great.. Its a method of asset protection.. And worth the money If that is your goal.

Aniyah Byrd: He might only required a registered agent for $100/year or cheaper if law is same as TX.

Elise Alexander: Is it a real sitreet address? If not a pob or mail box etc address doesnt cut it as a biz address when it comes to a law suit. $60 just for address is rip off – is he getting more? like phone calls & mail forwarding?

Cash Cummings: You need an address where the State can serve you, if needed. So if no one is there to accept papers, it wont work.

Genevieve Curry: $50 per month is stupid. As Irfan says, he only needs a registered agent. There are hundreds of them if you google registered agent and their price is negotiable. Most try to get $70 per year, but Ive had them for as low as $50. He will also have to pay the Delaware annual fee which is about $300 and know how to file it or hell end up paying someone to do that. They normally charge $100-150 for that service (a 5 minute job). A question, why did he form a Delaware LLC? He will need one in the state that he operates in and not in Delaware.

Ariah Barker: Thank you for your comments everyone, as I mentioned in my post, a “guru seminar company” sold him on this as being a “good idea” and I will clarify based upon the comments posted here.

Camille Parks: Delaware the state or county?

Camilla Montgomery: I am assuming he is using Delaware because of its superior asset protection laws; however, the monthly fee that he is paying for a registered agent is steep in my opinion. I thinks its way too much. Why not use a Land Trust and keep it local? Js.

Iker Reeves: I live in Delaware. Do you know which company he used?

Camilla Montgomery: LLC

Iker Reeves: The servicing company

Camilla Montgomery: Iker Reeves: Not sure.

Iker Reeves: Here, the Registered Agent just acts as a medium between the owner and the Secretary of State to receive correspondence and notices to keep the business current. You dont really need a business or mailing address in Delaware to have an LLC. $50-60 (A YEAR) is the norm here for that service.

Ariah Barker: According to my “newbie associate” he said the state told him that he had to have a Delaware mailing address? And he has been wrong about other things? So I will check with whatever paperwork he has, since I would not be surprised if he got that wrong…

Iker Reeves: I dont know why they would tell him that. Google doesnt have a Delaware mailing address, but is incorporated in Delaware.

Iker Reeves: Give Harvard Business Services in Lewes, Delaware a call… they can help. 3026457400

Iker Reeves: Ariah Barker: at the minimum he can get his registered agent service switched to them… its 50 a year.

Genevieve Curry: You definitely need an address in Delaware. The registered agent provides that address. If you have a buddy there you can use him and his address as a registered agent. A few states allow you to use your own home address,but not too many. I believe NY is one that allow it.

Cash Cummings: Genevieve Curry: I have a foreign registered LLC and I use a family member in Delaware as my registered agent.

Evan Rogers: Wyoming corporations , LLC are cheaper better and have more favorable laws than Delaware. Guess the guru has never sat in on one of my meetings.

Collin Hodges: I can tell you that in WA state, you can register an LLC using a UPS mailing box address while you cant use a standard PO box.

Genevieve Curry: Normally its the lenders who are requiring Delaware LLCs. Supposedly it makes it easier to foreclose on a loan in default. But have only seen this requirement if the loan is like $5M+. Never heard that Delaware gave an investor any extra protection, but Im open to learning if there is some advantage.

Sasha Jennings: En.m.wikipedia.org

Delaware statutory trust – Wikipedia

Brylee Cunningham: Great link. This is not simple and I am a CPA. Simple concept more difficult execution.