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NM LLC finally done, a review of FreeRegisteredAgent

Discussion in 'Business & Tax Advice' started by Warbucks, May 26, 2009.

  1. Warbucks

    Warbucks Junior Member

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    Finally got my LLC today, thought I'd give a quick review of the FreeRegisteredAgent service.

    I previously wrote about my research and how I chose New Mexico and FreeRegisteredAgent.com here:

    Code:
    http://www.blackhatworld.com/blackhat-seo/business-tax-advice/72985-llc-law-has-melted-my-brain.html
    And just to be sure we're all on the same page, a quote from that thread:

    LLCs are not methods to avoid paying taxes, as soon as you get a bank account or an EIN you're linked to it anyway. Lawyer smells fraud in something you do blackhat style an LLC or corp is zero protection for your personal assets.

    On April 21st I sent an order in to FreeRegisteredAgents requesting they create a New Mexico LLC for me, that they act as registered agents, and that they sign as "Organizer". The other thread lists why this combo is helpful.

    My "business address" is a commercial mail drop in Oregon (Where I am not) that scans incoming mail and puts up pdfs for you to peruse, shredding the originals. This costs me $10/mo.

    My cost, out of pocket was $92. This includes all fees, handling and the first year of Registered Agent service for free. Each additional year the RA service is $99/year or they will match anyone lower.

    New Mexico has no annual LLC reporting or fees, so they cannot expire unless you forget to pay your registered agent.

    All that is the good stuff, now here's the not so good.

    I placed the order April 21. After not hearing anything I contacted them on May 8. This isn't unheard of because NM is known to be a bit slow in processing.

    They said they were forwarding me forms to sign, I said that I needed no forms signed, as NM didn't require them and they had assured me they were acting as Organizers.

    I got no reply. I then got swamped and never followed up with them

    Today, May 26, almost six weeks later, I got my notification that it was done. I contacted them to try to get an understanding of what caused the delays, and had to go back and forth with them to get a full answer.

    First, they never sent my forms to New Mexico until May 8 because they "had computer issues".

    New Mexico filed the forms May 12. FreeRegAgent says they received them back today, 14 days later, which seems like a stretch.

    They claim to have fixed and updated their computer systems as well as hiring a person specifically to do nothing but FreeRegAgent applications due to them being swamped.

    If you're like me and not looking for a great deal of hand holding, I'd give them a thumbs up with some reservations. They weren't exactly forthcoming with the delays, and didn't seem to fully understand NM, which since they mostly do Delaware and Nevada probably isn't that far fetched. You can't beat the price, however, and now that it's done I only need them for a NM address.

    If you're someone who wants tight, fast customer service, I'd recommend the more expensive, but much better regarded LegalZoom.

    Now I need to get an EIN and figure out how to get a bank account that won't disqualify me because of ChexSystems on my personal stuff.
     
    • Thanks Thanks x 8
  2. number101

    number101 Junior Member

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    I thought the idea was not to have one.
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    Just google "non-ChexSystem Banks" you should find a solution.

    Thanks for the report by the way. Is there any specific reason you didn't do with a Wyoming LLC?

    101
     
  3. undeadlink

    undeadlink Newbie

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    I personally filed for an LLC in NM and it took almost a month to get my paperwork back... although this was because I was too busy to pick it up and it took them that long to mail it. They actually finished the filing and called me to pick it up about 2 days after I turned it in.
     
  4. Warbucks

    Warbucks Junior Member

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    There's a non-chex credit union about four miles from here, I was planning on checking them first.

    I looked long and hard at Wyoming when I started, and honestly it came down to cost. Wyoming is a fantastic deal, but pseudo-anonymity requires you pay for a nominee director each year. They also, if I recall, have a yearly filing with attached fee.

    New Mexico only puts "Organizer" on public record, and when using a service to do your formation, that ends up whichever staff member processes you. NM doesn't know and doesn't care about officers or owners.

    And as an added bonus, a NM LLC can't expire. There are zero annual reports, zero annual fees. If you look at the NM register of companies, Corps are listed with statuses like AC for Active or RE for Revoked. LLCs are all EX for exempt.

    There are only two ways a NM LLC can go away. Either it files a dissolution form with the state, or it doesn't pay its Registered Agent fees and the state revokes it for not having an in-NM agent.

    I knew NM was a bit slow going in. This is not like a Wyoming or Delaware where you can get an LLC in 24 hours. I do suspect that a decent part of the delay was FreeRegAgent and not the state though.
     
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  5. Warbucks

    Warbucks Junior Member

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    I received a Fedex envelope today containing... an LLC.

    Six pieces of paper paperclipped together.

    1) Cover letter offering to sell me all sorts of upgrades like corporate embossing seals, which a NM LLC doesn't need.

    2) A one page "LLC Checklist" full of stuff that is almost exclusively only in other states.

    3) A Letter from the State of New Mexico advising that they had approved.

    4) A Certificate, embossed with the state seal, listing the LLC as registered and valid.

    5-6) The two page original application.

    It's sort of bizarre thinking that really, four sheets of paper are the complete and total embodiment of an LLC. Other than the fact that the mail drop that serves as the business address is paid for by my credit card, it's not tied to me at all. I could hand anyone this packet and they would own the LLC lock stock and barrel.
     
  6. Rick4691

    Rick4691 Registered Member Premium Member

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    This makes me want to try the LLC route again. Last year I naively started an LLC in the state where I live, and the annual fees were just too much, so I dissolved it.

    A New Mexico LLC sounds like the way to go. I never thought to just get a mail-drop.

    Thanks given. :)
     
  7. alcapon3

    alcapon3 Junior Member

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    They didn't require your social security number to make the corporation?
     
  8. dynander

    dynander Regular Member

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    Do you think I could get one of that, if I not live in USA?

    Actually what I need is an bank account with an ATM card sent to my by mail, so I could skip checks in some networks and clickbank

    I know this is a little off topic, but I will appreciate the help :)
     
  9. jtliewim

    jtliewim Junior Member

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    Can anyone here share your experience in opening LLC in USA but you are not living in USA?

    I have the same question as dynander.
     
  10. Warbucks

    Warbucks Junior Member

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    Nope, my name isn't even on the application. The state of New Mexico has no idea who I am.

    It's not bulletproof, law enforcement or a determined lawyer would find me in no time at all, but it keeps my info out of the public record and out of google searches.
     
  11. tywebb

    tywebb Regular Member

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    Thanks for the info warbucks. How do you go about getting an EIN and a bank account at this point? Seems like it would be hard to open an account in that business name if your name is nowhere on it?
     
  12. Warbucks

    Warbucks Junior Member

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    As I mentioned in the other thread, this is a piece I haven't had time to work through yet.

    As I understand it, Ownership of the LLC is proven by possession of the stamped document from the state of NM. I literally could sell you the LLC by handing you the papers in exchange for a fat stack of Quatloos.

    It is possible that I may have to provide a document on letterhead that states that I am Treasurer or something similar. I hope to work on EIN and bank account next week. and I'll update here.
     
  13. tnoam71

    tnoam71 Registered Member

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    Hello Warbucks!

    Thanks for all the useful info in this thread.

    I just wanted to ask you, now that a couple years have passed, if you are pleased with your decision to form your LLC in NM.

    I'm about to form an LLC as well and am looking really hard at NM and Nevada.
     
  14. rinksrat

    rinksrat Registered Member

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    Thanks for the great info. I lived in NM, but now live in Oregon
     
  15. Euclid

    Euclid Newbie

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    Hello Warbucks ..
    I'm also wondering if you would like to share some of your experience you had with your NM?
    What mail forwarder do you use in Oregon?
    Thank you
     
  16. CustomMSP

    CustomMSP Newbie

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    Any luck with setting up the EIN and a bank account?

    Thanks!
     
  17. RBseatown

    RBseatown Junior Member

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    We're actually in the same process, but we decided to skip those LLC registration services and follow a do it yourself start up guide. Things are going well, everything was straight forward and easy to do. Got all the paperwork in the mail. We're in the same spot as you right now, so let me know how setting up the EIN and bank goes. The EIN should be a simple process, its not much of anything to get that. What bank do you think you're going to go with though?
     
  18. fuzzy_corleone

    fuzzy_corleone Regular Member

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    I just ordered a Delaware LLC. Apparently they're going to ship me something in two days. Can't wait!
     
  19. optimus72

    optimus72 Junior Member

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    My input here is needed...an EIN can be obtained by the secretary of the corporation - it does not need you...also noticed. Also IRS does not know about that bank account until you file...or info on it is reported for large deposit withdrawal (8 to 10 grand size) or some contractor 1099 's you!
     
  20. eyal8r

    eyal8r Newbie

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    I know this is an old thread- but- I'm curious if anyone has had experience with these 'online' Registered Agents divulging ownership info of an LLC, either willingly or via Google Search? If for some reason they published it and Google got a hold of it, bye-bye anonymity...