Worth it to hire an LLC Holding Agent

[Shafi Noss]

Hi everyone,

I am creating a holding LLC with a partner for our multifamily investment portfolio. He is located in VA and I am in MD. I've heard recommendations to file in states like Delaware and Wyoming, but hear different things about the advantages. Would be interested to hear any thoughts about that.

If I do decide to file in MD or VA some companies offer to be a registered agent and walk you through the process for a few hundred dollars. They advertise that this will provide anonymity and simplicity, a single address that won't change and isn't traceable to you. Is this worth it? Do any of you use a separate registered agent for your LLCs?

Edit: Reposting in the Financial, Tax, and Legal section. 

[Spencer Gray]

Keep it simple is my advice (and none of this is legal advice by the way, only my non legal opinion, you should consult your attorney). 

I personally do no think it's worth paying someone to be your registered agent. The process to set up an LLC (at least in my home state of Indiana) is a very simple online process that can be completed in 10 minutes. If you are going to pay someone or have someone walk you through it for the first time it might as well be your lawyer. If someone finds you as the registered agent, they probably just want to offer to buy your property

I often use a separate holding company as a registered agent for Special Purpose Entites (LLCs), but I am the registered agent of that company.

As far as incorporating in Delaware or Wyoming I also don't think it's necessary unless you need more anonymity for some reason. If your company is dealing with hundreds or thousands of customers/investors and you don't want them to know who you really are or where you're located, then I could understand. Maybe you are involved in some other risky venture, then I can also see that as well. For most real estate deals where it's just several parties or even a few dozen keeping it simple by registering in your home state and use you or your attorney as a registered agent.

Keep it simple. Just because you can doesn't always mean you should!