Do I need a registered agent for an LLC?

[troops]

What is the name of your state? Minnesota

I'm planning to form a new LLC and work from home. Looking online, I thought I needed a registered agent for service because I will not always be home to accept service.

I talked to an attorney about forming an LLC. He said many of his clients are in the same situation and don't use a registered agent. He said they wouldn't just make one service attempt. Is he correct or have his clients just been fortunate?

Thank you in advance.

 

[quincy]

Are you a single member LLC? Are you using your home address as a business address?

 

[troops]

Are you a single member LLC? Are you using your home address as a business address?

I will be forming a single member LLC and using my home address as a business address.

 

[quincy]

I will be forming a single member LLC and using my home address as a business address.

You should not need a registered agent. You personally can be served any legal documents and accept any business mail at the registered address of your business (your home address).

That said, you might want to spend money on a registered agent if you are concerned about keeping your home address private.

 

[adjusterjack]

There's another consideration. If an attempt is made by a process server to serve a lawsuit and he has to keep coming back for repeated attempts he will charge his client for the repeated visits. If you lose the lawsuit you'll pay the cost of all those attempts.

 

[troops]

You should not need a registered agent. You personally can be served any legal documents and accept any business mail at the registered address of your business (your home address).

That said, you might want to spend money on a registered agent if you are concerned about keeping your home address private.

But what if I'm not home and someone attempts service? Do I lose by default or do they have to make more attempts, leave a notice, etc.?

 

[quincy]

But what if I'm not home and someone attempts service? Do I lose by default or do they have to make more attempts, leave a notice, etc.?

There will be more than one attempt to serve you. How often do you expect to be away from your home/business on a daily basis? Do you expect to be sued? Do you have business insurance?

 

[quincy]

Following is a link to information on starting a business in Minnesota:

https://mn.gov/deed/business/starting-business/

 

[Taxing Matters]

What is the name of your state? Minnesota

I'm planning to form a new LLC and work from home. Looking online, I thought I needed a registered agent for service because I will not always be home to accept service.

I talked to an attorney about forming an LLC. He said many of his clients are in the same situation and don't use a registered agent. He said they wouldn't just make one service attempt. Is he correct or have his clients just been fortunate?

Thank you in advance.

Unlike in some other states, a Minnesota LLC (one that is organized in that state as opposed to a LLC from another state that is registering to do business in Minnesota) is not required to have a registered agent. A foreign LLC, which is any LLC organized outside Minnesota, must have a registered. Specifically, Minnesota Revised Statutes section 5.36 says:

A business entity formed under the laws of Minnesota may designate a registered agent in its formation document. A business entity formed under the laws of another jurisdiction must designate a registered agent when registering to do business in Minnesota. The registered agent may be a natural person residing in this state, a domestic corporation, or limited liability company, or a foreign corporation or foreign limited liability company authorized to transact business in this state. The registered agent must maintain a business office that is identical with the registered office.​

​

So whether you wish to get a registered agent for a Minnesota LLC will come down to whether you think the benefits of having one will be worth the fee (which usually isn't all that large).

 

[quincy]

troops, do you have another job that keeps you away from your home during normal business hours (i.e., 9 to 5)?

If so, you could be smart to have someone else be your registered agent.

If not - and your absences from your home are not extended absences - the attorney who advised you previously is (probably) correct that one would not be necessary for your particular business.

 

[LdiJ]

You also want a good business liability insurance policy.

 

[Zigner]

For clarification: The purpose of a registered agent is not to allow service to be made when you are simply unavailable (although, one would generally need to be available for service during business hours). A registered agent's purpose is for a non-human legal entity to have an actual human being who can accept service of documents, notices, etc. You could even be the registered agent for your own LLC, if you so chose, although (as pointed out above), you likely wouldn't need a registered agent in your situation.

 

[troops]

Thank you for all the information. I am aware that I don't legally need a registered agent and that I should get a business liability policy. I don't expect to be sued, but I like to be prepared. With Covid, I'm home most of the time. I was just concerned about them missing me once and I lose by default. I was also concerned that the attorney I talked with might be giving me bad advice. That doesn't seem to be the case though.

I'll probably get one for the added peace of mind, especially if I'm away from home more in the future.

 

[quincy]

Thank you for all the information. I am aware that I don't legally need a registered agent and that I should get a business liability policy. I don't expect to be sued, but I like to be prepared. With Covid, I'm home most of the time. I was just concerned about them missing me once and I lose by default. I was also concerned that the attorney I talked with might be giving me bad advice. That doesn't seem to be the case though.

I'll probably get one for the added peace of mind, especially if I'm away from home more in the future.

It appears that the attorney you consulted offered you solid advice.

A registered agent can make it so your home address is not part of your business’s public record, which many small business owners like from a privacy perspective. The cost of registered agents vary but you generally can find one for a small (under $100) annual fee. You should check out several agents before settling on one - or you could hire a trusted homebound relative or friend to serve as your agent.

We all appreciate the thanks, troops, so thank you. Good luck with your business.

 

[LdiJ]

Thank you for all the information. I am aware that I don't legally need a registered agent and that I should get a business liability policy. I don't expect to be sued, but I like to be prepared. With Covid, I'm home most of the time. I was just concerned about them missing me once and I lose by default. I was also concerned that the attorney I talked with might be giving me bad advice. That doesn't seem to be the case though.

I'll probably get one for the added peace of mind, especially if I'm away from home more in the future.

Things don't actually work the way that you think they do. If they have to serve you in person and they miss you, then you weren't served and cannot lose by default unless they lie and say that you were served. The vast majority of professional servers will NOT do that. They won't risk their livelihood by doing that kind of thing.

One of the best things about having a good business liability policy is that the insurance company will provide you an attorney to not only fight the lawsuit, but to fight claims of false service. I don't know of any company I have ever worked with, that was registered in it's own local area, that has gone the step of setting up an independent, registered agent.