I’ve run across another online incorporation / LLC formation service – FreeRegisteredAgent.com – with deficiencies that I must bring to readers’ attention. There now are enough of these companies that I have listed them on my new Hall of Shame page.
FreeRegisteredAgent.com’s claim to fame is that it provides registered-agent services at no charge for one year, and for $99 per year thereafter.
Their Free California Registered Agent Service page touts their service for California corporations, LLCs and other entities. The problem I have is that California does not require any entity to have a registered agent, so after the first year, companies are paying for a service that they don’t need!
That page states that “almost every jurisdiction requires by law that you must have a registered agent located in that jurisdiction” without stating that California is not such a jurisdiction. California, instead, allows individuals and corporations to be designated as agents for service of process, and they need not be paid – please see Incorporation: Not All (States’) Agents are Created Equal.
Talk about misleading….
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Follow-up: Since writing this post, I have had a lengthy, cordial e-mail exchange with the owner of FreeRegisteredAgent.com. I now know that he did not intend to mislead readers; the site is misleading because –
- He was not aware of how California and Delaware corporate practices differ, and
- He uses a standard template for all states’ pages on the website, so even though he now is aware of California’s differences, he cannot reflect them in the website’s text, anyway.
Dana H. Shultz, Attorney at Law +1 510 547-0545 dana [at] danashultz [dot] com
This blog does not provide legal advice and does not create an attorney-client relationship. If you need legal advice, please contact a lawyer directly.