Hello everyone, a quick questionâ€¦ I have a new business associate (here in Texas) who formed a (State of Delaware) LLC based on â€œguru adviceâ€ from some seminar he attended. (I would have told him NOT to waste the money on the guru hype, and â€¦He already has paid the money) He pays $300 a year to the state of Delaware and â€¦ 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 â€œguru seminar companyâ€ sold him on this as being a â€œgood ideaâ€ 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 â€œnewbie associateâ€ 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.