New York is one of the best states to start a business or an LLC. The state of New York is an economic powerhouse, which is why it's one of the wealthiest states in the country. Manhattan and the other 4 boroughs of New York are massive and filled with opportunities. If you're interested in starting an LLC in New York and need a registered agent, or if you already have an LLC, you're in the right place.
We're going to take you through everything you need to know about registered agents in New York. We'll take you through what a registered agent is, who can be a registered agent, and how they can help your LLC. Towards the end of our article, we're also going to point you in the right direction if you're looking to work with a registered agent service.
Read on to learn more about registered agents in New York.
What Is a New York Registered Agent?
A registered agent in New York is a person or entity that acts as the point of contact between an LLC and the state of New York. Registered agents handle documents and the legal process for an LLC and are also responsible for filing annual reports on behalf of the LLC. Without a registered agent in New York, an LLC will not be compliant with state laws and is subject to penalties. It's also required by law to have a registered agent in New York, so having an LLC can cost you money in legal fees like fines.
While registered agents serve as the point of contact for an LLC, registered agents also handle other needs. These include:
- Handling the legal process
- Getting paperwork for liens and other government penalties
- Making sure the LLC is compliant with state laws and guidelines
- Filing annual reports
- Data storage
These are only a handful of things that registered agents do for an LLC. In fact, with a registered agent service, registered agents can do even more for an LLC.
Can a Business Owner Be a Registered Agent?
Yes, the owner can be the registered agent in New York. The only requirement to be a registered agent in New York is to have a primary address in the state, and that address can't be a post office box. However, while you can operate as your own registered agent, in New York, you can also choose to work with an entity like a registered agent service or choose to work with a friend or family member. As the owner of the LLC, who you choose is up to you.
Still, we always recommend working with a registered agent service because they can elevate your LLC.
Why Do Businesses Need a Registered Agent in New York?
LLCs in New York need a registered agent for a few reasons, but the primary reason is that it's legally required. State law in New York requires LLCs to have a registered agent to maintain compliance. That said, having a registered agent can serve more than just a legal need. Working with a registered agent service can give you flexibility and make your LLC more well-rounded.
Here's why.
Privacy
First and foremost, when you work with a registered agent service, you get privacy. In New York, registered agents need to list their primary address and make it public information for the state. This means that anyone can find information and knowledge about your personal life and personal property. For the sake of being safe, working with a registered agent service can help prevent this from happening and keep your personal life separate from your business. This is because registered agent services provide their address instead.
Legal Process
Working with a registered agent service also helps with the legal process. The legal process is handled by registered agents when the process begins. This means that when someone is being served due process paperwork, the registered agent is the one who receives it.
If the owner of the LLC is handling the legal process, paperwork can be dropped off at home, or even at the LLC during business hours. You want to avoid these situations, and working with a registered agent service can help. Registered agent services can handle legal paperwork and alert you when other tasks need to be done. Registered agent services can also receive liens and other necessary paperwork as required.
Flexibility
People who own LLCs are typically busy. For this reason, having free time is challenging, and there are many tasks and things to focus on. If the owner of the LLC is also a registered agent, things get worse. The owner will have to focus on daily LLC tasks as well as make sure the company remains compliant. This means handling annual reports, storing data, and being available during business hours every day except holidays.
Working with a registered agent service can give you more flexibility. Instead of the individual being the point of contact with the state, the registered agent service becomes the point of contact with the state. This allows LLC owners to focus more on the LLC and less on registered agent tasks.
Compliance
Many things need to happen for an LLC to remain compliant. While these things vary based on your state, New York has similar compliance requirements to most states. You must file reports, communicate when necessary, and maintain the proper licenses if licenses are needed.
Working with a registered agent service can help you remain compliant. Instead of worrying about these issues, the third-party organization will handle them. Owners won't have to worry about sending information to the state or figuring out if they comply with state regulations.
Data Storage
The last thing to consider is data storage. When the owner of an LLC also handles data storage for the state, things become tricky. This is because you never want to mix documents of registered agents and documents for normal LLC operations. Losing or mixing these documents can cause you to file things late, which leads to legal fees and various penalties.
It is also important to have records of your taxes, accounting, annual reports, and more. Registered agent services can provide you with cloud-based options that make it easy to send data between owner and registered agent service and state and registered agent service.
Overall, registered agents in New York can do a lot for your LLC. It depends on your needs and what you're looking to get out of it.
What to Look for When Choosing a New York Registered Agent
Finding a registered agent service in New York is easier said than done. There are many factors and variables to consider when shopping for a registered agent service. The good news is that there are methods you can use to narrow down your options and separate good registered agent services from bad ones. We're going to take you through everything you need to consider.
Professional Service
We'll begin with choosing a professional service. There are millions of options when it comes to choosing a registered agent. You can choose yourself, a friend, another LLC, a family member, or even an acquaintance. While you have many options, it's almost always best to work with a registered agent service that's been around for a while.
Choosing a professional service is important because it can help your LLC remain compliant and make it easier for the owner to focus on the LLC. Professional services will also have great customer service, offer data storage solutions, and provide you with other perks unique to working with registered agent services.
Value
Another factor to consider is value. The value that a registered agent service provides is another thing that sets it apart because each company offers something different. For example, most registered agent services have several packages that you can choose from. These packages come with things like data storage, assistance with taxes, and even accounting. These packages and add-ons are what create value.
While you should factor the price into the equation, the value is about more than the cost. Plus, most registered agent services will cost around the same amount. The price range is typically between $50 and $1000 depending on the service you use and what it comes with.
Data Management
If you're looking to work with a registered agent service, data management is one of the biggest factors that sets companies apart. This is because data management helps you stay up-to-date on information and sends information between the state and LLC on time. Data management from a good registered agent service can also prevent you from getting into legal trouble because they can pick up on issues before they happen.
That said, data management should come in cloud storage. When you're comparing registered agent services, make sure the one you choose has cloud-based options. Cloud-based options give you the ability to send data faster, store more data, and reliably manage information.
Shopping for a registered agent service in New York can be complicated, but it doesn't have to be. If you compare registered agent services based on our variables, making the right choice is a breeze.
How Much Do New York Registered Agents Cost?
In New York, registered agents can cost between $0 and $1,000. Depending on your LLC, what you need, and who you choose are all factors that influence the cost of a registered agent. For example, you can choose to work with a friend, family member or even become a registered agent on your own. In this case, the registered agent wouldn't cost you any money. The only issue would be penalties and late fees that happen if filing dates are missed or if the LLC fails to maintain compliance.
Another example is working with a registered agent service like ZenBusiness. When you work with a registered agent service, the cost is typically between $50 and $1,000. The price can vary depending on the package and services you need. For example, ZenBusiness is a well-rounded company that can even help you start an LLC. That said, basic registered agent packages typically start at around $50-100 per year.
On the other hand, if you want to get the most out of a registered agent service, it's going to cost more. In these cases, the cost of a registered agent service in New York can be between $500 and $1,000. The good news is that you get benefits like accounting, tax filing, and cloud-based data storage for the extra money.
Registered agents can be free or expensive in New York, so it depends on what you're looking for. Though, we always recommend working with a service despite the cost.
What's the Best Registered Agent Service in New York?
Working with a registered agent service is the best way to get the most out of a registered agent. While registered agents can be a hassle (if you decide to be one as the owner), working with a reputable registered agent service comes with many benefits. That said, you need to make sure you choose the right service. For us, there's no better option than ZenBusiness.
ZenBusiness is one of the best registered agent services in the country. The company services all 50 states and has built up a great reputation. ZenBusiness is known for being great with customers, helping customers understand issues and needs, and great data management. For these reasons, ZenBusiness maintains ratings of above 4 stars across multiple platforms.
ZenBusiness is unique because of the packages it offers and the add-ons you can choose from. While the company offers several packages, with the cheapest option being a basic registered agent service that's cheaper than competitors, the company also offers add-ons that you can mix and match. For example, you can pay for the basic package but upgrade to an accounting assistance plan if you want.
Overall, you don't have to have the most expensive package to get what you need from ZenBusiness, and that's why they're our favorite choice.
