Risks of being your own LLC Registered Agent

[magnet18]

I'm in the process of creating an LLC for the purposes of collecting a small (4 figures) amount of passive income from some farmland I own.

(as well as for the practice, to have the structure, personal learning and growth, opportunities to open chase ink cards, and to reduce friction for future endeavors)

State of Indiana.

For the registered agent step, I see plenty of online resources saying that I absolutely *CAN* list myself as a registered agent... *BUT* <list of risks, mostly things like you might forget you're being sued and/or be embarrassed when you get served at work> and they recommend <probably highest bidder and/or authors cousin>

I don't have any actual entrepreneurs in my network that are educated about this, can anybody weigh in on if there is any real reason not to list myself for this?  It seems absurd to spend ~5% of this LLC's profit on registered agent fees.

Auxiliary questions:
If listing myself, I need to list my "day job" address or my home address?
What happens if they attempt to serve me papers and I'm not home at the time?
If it is strongly recommend that I pay a service, does anyone have a recommendation in the state of Indiana?

Thanks!

[HPstache]

I'm in the process of creating an LLC for the purposes of collecting a small (4 figures) amount of passive income from some farmland I own.

(as well as for the practice, to have the structure, personal learning and growth, opportunities to open chase ink cards, and to reduce friction for future endeavors)

State of Indiana.

For the registered agent step, I see plenty of online resources saying that I absolutely *CAN* list myself as a registered agent... *BUT* <list of risks, mostly things like you might forget you're being sued and/or be embarrassed when you get served at work> and they recommend <probably highest bidder and/or authors cousin>

I don't have any actual entrepreneurs in my network that are educated about this, can anybody weigh in on if there is any real reason not to list myself for this?  It seems absurd to spend ~5% of this LLC's profit on registered agent fees.

Auxiliary questions:
If listing myself, I need to list my "day job" address or my home address?
What happens if they attempt to serve me papers and I'm not home at the time?
If it is strongly recommend that I pay a service, does anyone have a recommendation in the state of Indiana?

Thanks!

I am not sure if this helps, but I'm a fellow Entrepreneur with two LLC's in the same general income ranges and am the Registered Agent for both.  Curious to hear what people that are smarter than me on this subject have to say.

[YttriumNitrate]

Well, since I live in Indiana, the clear choice is to have me be the registered agent for your business. And, I'll do it for just ~4% of your businesses profit (you get the 1% off Mustache discount).

Seriously though, I'm listed as the registered agent for my Indiana business using my home address. Unless you are trying to hide your identity and/or home address, I wouldn't bother paying someone to be your registered agent.

[magnet18]

I'm in the process of creating an LLC for the purposes of collecting a small (4 figures) amount of passive income from some farmland I own.

(as well as for the practice, to have the structure, personal learning and growth, opportunities to open chase ink cards, and to reduce friction for future endeavors)

State of Indiana.

For the registered agent step, I see plenty of online resources saying that I absolutely *CAN* list myself as a registered agent... *BUT* <list of risks, mostly things like you might forget you're being sued and/or be embarrassed when you get served at work> and they recommend <probably highest bidder and/or authors cousin>

I don't have any actual entrepreneurs in my network that are educated about this, can anybody weigh in on if there is any real reason not to list myself for this?  It seems absurd to spend ~5% of this LLC's profit on registered agent fees.

Auxiliary questions:
If listing myself, I need to list my "day job" address or my home address?
What happens if they attempt to serve me papers and I'm not home at the time?
If it is strongly recommend that I pay a service, does anyone have a recommendation in the state of Indiana?

Thanks!

I am not sure if this helps, but I'm a fellow Entrepreneur with two LLC's in the same general income ranges and am the Registered Agent for both.  Curious to hear what people that are smarter than me on this subject have to say.

Well, since I live in Indiana, the clear choice is to have me be the registered agent for your business. And, I'll do it for just ~4% of your businesses profit (you get the 1% off Mustache discount).

Seriously though, I'm listed as the registered agent for my Indiana business using my home address. Unless you are trying to hide your identity and/or home address, I wouldn't bother paying someone to be your registered agent.

Thanks both for weighing in!  Very helpful to hear from some other unbiased 3rd party humans.

I think you're confirming my suspicion that for small fry stuff there's no real reason not to DIY.

[BicycleB]

I'm in the process of creating an LLC for the purposes of collecting a small (4 figures) amount of passive income from some farmland I own.
...

State of Indiana.

...can anybody weigh in on if there is any real reason not to list myself for this?  It seems absurd to spend ~5% of this LLC's profit on registered agent fees.

Auxiliary questions:
If listing myself, I need to list my "day job" address or my home address?
What happens if they attempt to serve me papers and I'm not home at the time?
If it is strongly recommend that I pay a service, does anyone have a recommendation in the state of Indiana?

Thanks!

Not from Indiana; intrigued. In my state, you're not required to have an agent, only to be responsive if you're mailed or served (last I checked). So I Googled...take my results with the necessary grain of salt.

Per link below, "The agent must be also be available during normal business hours to forward any service of process, notice or demand pertaining to the entity to the appropriate individuals." That seems to answer most of your questions - either you're willing to be served legal papers at your day job, or you need an agent.
https://startingyourbusiness.com/indiana-registered-agent/

I agree that if you want an LLC for a $1000/year "business", it looks like the agents will cost 5% or so.
https://www.incsmart.biz/IndianaRegisteredAgent

But $50 to actually be available isn't crazy (in my humble opinion after starting an LLC or two elsewhere). You'd fulfill all your stated purposes (experience, etc) even if you paid it. To get a smaller percentage, you'd need to earn more!

If you want to Mustachily DIY it and yet not get served at work, get a neighbor who stays at home to be the agent. Maybe nothing bad will happen!

Heck, how often are you going to get sued, or served a big collection notice by a creditor? Maybe just give them your work address.

Again, I have no Indiana experience, just offering my version of common (?) sense. Also - not a lawyer, not giving legal advice.  :)

[magnet18]

Thanks for that link!
$50 is cheaper than what i was seeing, I was seeing $150.  That's less than 2% and easier to swallow.  3 year rate should be almost 1%. 

[YttriumNitrate]

Not from Indiana; intrigued. In my state, you're not required to have an agent, only to be responsive if you're mailed or served (last I checked). So I Googled...take my results with the necessary grain of salt.

So, I had to google "Live Music Capital of the World," but if you want to form a Texas LLC, it looks like you'll need to specify a registered agent (but like other states you can be the registered agent for your LLC). See the Article 2 part in the form to create a Texas LLC.

https://www.sos.state.tx.us/corp/forms/205_boc.pdf

[BicycleB]

Not from Indiana; intrigued. In my state, you're not required to have an agent, only to be responsive if you're mailed or served (last I checked). So I Googled...take my results with the necessary grain of salt.

So, I had to google "Live Music Capital of the World," but if you want to form a Texas LLC, it looks like you'll need to specify a registered agent (but like other states you can be the registered agent for your LLC). See the Article 2 part in the form to create a Texas LLC.

https://www.sos.state.tx.us/corp/forms/205_boc.pdf

Oh, I see! Good catch, @YttriumNitrate.

[LightStache]

I use a Registered Agent for both my in-state and out-of-state LLCs. For in-state, I didn't want my home address listed in the public record. For out-of-state, having a domestic RA is a requirement.

In your case I'd be my own RA using home address. If you need to get served, the agent will find you :). The tradeoff here is an extremely small chance you get served at work and are a little embarrassed. There's an equal or greater likelihood that you will get served as a natural person for something unrelated to the LLC -- can't really control that.

For property, it's typical to form two LLCs. One that operates the lease(s) and one that holds title to the property. That way your tenants only have clear standing to sue the operating company, which has minimal assets. This isn't legal advice, of course.

[YttriumNitrate]

For property, it's typical to form two LLCs. One that operates the lease(s) and one that holds title to the property. That way your tenants only have clear standing to sue the operating company, which has minimal assets. This isn't legal advice, of course.

Since you're in California, wouldn't that be $1,600 in state LLC fees each year if you have just a single property? That would buy a lot of insurance. 

[LightStache]

For property, it's typical to form two LLCs. One that operates the lease(s) and one that holds title to the property. That way your tenants only have clear standing to sue the operating company, which has minimal assets. This isn't legal advice, of course.

Since you're in California, wouldn't that be $1,600 in state LLC fees each year if you have just a single property? That would buy a lot of insurance. 

Yup, that's one of many reasons why you can't do small/low-end development in CA. Insurance is important but I'm sure you've had experience where an insurance company doesn't want to pay a claim, right?