LLC question - Registered Agent Service worth it?

[Ethan Borshansky]

Does anyone recommend using a registered agent service such as that offered by LegalZoom? Is it worth investing the $160 yearly to avoid junk mail and have anonymity? Thanks.

[Anthony L. Velasquez, Esq.]

I have found that using a registered agent is good in some ways and bad in other ways.  I’ve used the major ones in the Trenton area (all NJ state filings occur in Trenton so the companies generally set up shop in Trenton or in neighboring Ewing), and they charge about $180 for a 3 year term.  I assume the one you would get referred to through LegalZoom would offer the same service.  In fact, LegalZoom probably contracts with someone like CSC or CTS (both in Ewing) for this service, because I can’t assume LegalZoom has set up its own physical offices for service of process with knowledgeable and trained staff in each and every state.  I’m sure they use one of the already established companies.  Here’s the down low from my experience in using a third party registered agent service:  It cuts down on junk mail, and it is the registered agent’s obligation to timely forward you the “real stuff” like civil lawsuit complaints that were filed against the company, etc.  Good ones are extremely knowledgeable in weeding out this type of stuff.  It provides a certain level of anonymity for the company, and for some of my clients (as you can imagine) this is very good.  I have often seen an upset customer/ client/ individual/ aggrieved party trying to complain about a company grow frustrated trying to find out who the company is, how to contact the owner, where to send a letter, etc., and instead of filing an action, complaint, lawsuit, etc., they simply give up and walk away.  You would be surprised how many people do not complete a “registered agent search” with the State of NJ (which generally costs $5 or $10), and simply give up based on frustration.  Additionally, the service company will generally only accept service for EXACTLY the company you own.  Thus, if the complainant has spelled your company name wrong, or botched some identifying info in the correspondence, the registered agent will generally not accept service, and the complainant may lose their case or claim simply upon lack of service of process/ failure to serve in a timely fashion.  On the flip side, this same thing can be bad because sometimes your company is being approached from a business venture that has a lucrative offer and the anonymity of having to contact the company through its registered agent at a third party company (and conduct a registered agent search for that third party company) causes substantial delay or acts as a complete gatekeeper (sometimes inadvertently and unwanted) for a great deal or lucrative opportunity.  So I guess the question is: who are you really trying to “keep out” and does the positive outweigh the negative for you to do so?  If you have valid, legal reasons for a gatekeeper it might be worth the $180 for 3 years.  If you are simply trying to cut down on junk mail, a trash can probably costs less than $180.  LOL.  Give me a call if you have any questions.  Anthony L. Velasquez, Esq.

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Not worth it, in my opinion, if you have an office. If you don't, you might want to use it instead of using a personal home address.