What is a Registered Agent and Do I Really Need One?

By Jordan Sheppherd

Repair Subcontractor

Registered Agent and the IRA LLC

According to Wikipedia – A Registered Agent (sometimes called a Statutory Agent) is a business or individual designated to receive service of process (SOP) when a business entity is a party in a legal action such as a lawsuit or summons.
The registered agent for a business entity may be an individual member of the company, or (more often) a third party, such as the organization’s lawyer or a service company.

Does a Registered Agent Have Control of my IRA?

A registered agent is only authorized to receive service of process documents. They are not imbued with management powers over the LLC or granted any legal powers to conduct business or make decisions on behalf of the LLC. They are simply a third-party designated to receive service of process. Registered agents are required by law in almost every state. You must specify your company’s registered agent when you file your Articles of Organization or Formation.

So who can be a registered agent? The answer varies from State to State; however for the
most part the agent must be a legal resident of the State that the LLC is being formed in. They must also provide a valid street address (no PO Boxes). A few States allow the LLC to designate itself (you the Manager) as the Registered Agent, provided the LLC’s place of business is a physical address, and is located in the State in which the LLC is being formed. Other entities can serve as a registered agent. While your CPA or attorney may offer this option at no charge or at a discounted rate; an actual registered agent company will probably cost $100 – $150 per year.

For the purposes of a Check Book IRA setup; you will most likely never use the actual registered agent’s services; however it is a good idea to do your research and consider the potential annual costs if you are planning to form a LLC in a State other than the one you live in.

For our clients who choose to file their LLC in New Mexico, the registered agent (unless you specify differently) is NM RAS, LLC which charges an annual fee of $125.00. If you have additional questions about a Registered Agent or need recommendations for a State; please contact us at (800) 482 2760.

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    1. Jackie W. Jaggers

      Does the Checkbook IRA let me know when I owe the fee?
      If so how is it paid?
      If not when do I pay the fee?

      • Jordan Sheppherd

        Hi Jack,

        Yes, we send out invoices for Registered Agent services at the beginning of each year.