BIRD WILLIAMS: You're listening to Bird Means Business Episode 79.

Hey there, and thank you for tuning into Bird Means Business podcast. I'm your host, Bird Williams, and I'm so glad you're here. Have you ever heard the term Registered Agent? Maybe whenever you filed your LLC, your limited liability corporation with the state, you noticed this was on the form. This is one of those things that I had to actually Google when I was launching my first business. But you're in for a treat because I have Registered Agents, Diane and Debra of Strategic Training and Consulting on the show to tell you all about what a Registered Agent is, and answer questions like can I be my own Registered Agent?

Let me tell you a little bit about Debra and Diane. I have known these twin sisters since college. And they're the founders of Strategic Training and Consulting where they help entrepreneurs realize their dreams of starting a business or nonprofit by assisting them with a multitude of services, including business and nonprofit formation, Registered Agent services, website development, HR management, and business compliance. Debra and Diane are also co-founders of Inspiring Women Today. And they manage businesses in the security space. So they are busy ladies, and I am honored to have them on the show.  

Now before we jump into the episode, I want to make sure you know about my free masterclass. It's the "4 Make or Break Keys to Business Building Success". Y'all this master class was a hit back in January. So I brought it back for you to watch at your convenience. You can go to birdwilliams.com/masterclass to really learn how to build, launch and grow a solid business without all of the constant overwhelm, confusion, or perpetually feeling stuck. You're gonna leave this free masterclass with tons of actionable notes, clarity on where to actually focus, and much needed momentum to make it all happen. All righty, let's jump into the episode.

Debra and Diane, I am so glad to have you on the Bird Means Business podcast. Thank you for being here.

STC: Thank you! Happy to be here.

BIRD: I know that our conversation is going to be so helpful and practical for entrepreneurs. This is a topic that I don't see a lot of people talking about, but it's so important. We're going to talk about why you need a Registered Agent. And before we jump in, I really want to just know, I want you to kind of tell us about your entrepreneurial journey and how you decided to launch STC which is Strategic Training and Consulting. That's your firm. And how you decided to offer Registered Agent services. So tell me a little bit about your journey.

STC: So our first business in 2015 was an adult education company. And our primary service was offering business English classes or courses to small business owners. And so during the course of our one on one lessons with them, our topics changed from business English to talking about small businesses, how to grow our businesses. So it went from teaching English to small business consulting, and that wasn't our plan.

To me, we had similar things that we talked about marketing, what was best for us and what's best for them. And we enjoyed it to be able to offer insight from our experiences to them. And then for maybe after our second year lease ended for our dual education company, we were looking for a new spot. And with that new spot is another location still inside the city, but also a new service. So that's why we started small business consulting. And when we started small business consulting, when first started our first business, we didn't know what a Registered Agent was. On the LLC paperwork, Registered agent, we just googled it and then found out what exactly it was.

And first, we found one because we didn't have our own location at first. So we found a Registered Agent for our first business. And then when we started our second business, we figured that's of course everything we wanted to offer. Because we know now what a Registered Agent can do. And we felt that we ought to offer that service. It's important for businesses in order to remind you to stay compliant. And yeah, I guess it was kind of we had a location, which was good and we're open normal business hours. That's one of the requirements of Registered Agents. So yeah, we decided to offer that.

BIRD: Yeah. So I guess let's back up and talk about what a Registered Agent is and why that service is important. I mean, you mentioned having an actual location which is key, right? A place where you can be served papers or have mail sent. So kind of explain what a Registered Agent is and why it's important.

STC: So a Registered Agent. It could be a person or it could be a company. But one of the requirements, they have to be open during regular business hours, maybe 9 - 6, or 8-5. So they receive any correspondence from the state. So it may be the Secretary of State, the Texas Comptroller's Office. Those are the top two. And sometimes it's also the IRS, the Texas Workforce Commission. So different states and government agencies have their registration contact on file. So super important.

Yes, very important. And then in terms of it being a requirement. So when someone's applying for the LLC application with the state or their nonprofit application to the state, on that application it requires you to list your Registered Agent. So before you can complete that application, you have to specify who that's going to be. So before you can start that LLC or corporation, you have to identify who your Registered Agent is.

BIRD:  Yes. So okay, I see. Your Registered Agent is someone who's going to receive notices from these entities on your behalf. Right? And I know that, like you said, it's on the LLC paperwork. So just for anyone who's listening who maybe doesn't know what an LLC is. That's if you're going to be a limited liability corporation. If that's the entity structure that you are deciding to have for your business, on that form in Texas. I guess in every state, I imagine, it requires that you list a Registered Agent.

And when we launched our first business, which is a gym here in Houston, called The League. We actually set everything up with a lawyer. So our lawyer set up our LLC documentation, our operating agreement, all of those basic forms. But then also our investor agreement. We have an independent contractor agreement. So it was like this whole bundle thing we were doing with our attorney. So he listed himself as a Registered Agent. It was our first time. We didn't really know what's going on. We saw the form. It looked great, awesome. And so then we would realize throughout the year, you know, after we filed our LLC, he would let us know if we've received mail and on and on. Well, then, when we got ready to launch subsequent businesses, we didn't go through him. And we kind of felt like we knew what we were doing. When it came to that line item in the LLC paperwork, we just put ourselves. And two things I know, and then y'all can talk to why it maybe isn't a good idea to put yourself. But one thing was that it's public information. And that was our home address, you know, us being associated with our business in that way. And so anyway, I want you to kind of just talk through why maybe those are some things you should consider not doing. And kind of anything you've seen in terms of like what's gone wrong in these situations.

STC: Yes, so people just want to finish the application and say like, "I'm just going to put myself down there". And they might just not know what a Registered Agent is. I guess the biggest reasons why you shouldn't do that is, one, if you don't have a physical location, you don't have a business and you're working from home. You have a home-based business, you might not be there during normal business hours. You may go run an errand, you know. So ideally, someone may not come to serve papers. But in case they do, and no one's there to receive those, then that's a problem. So for most companies, you never want to get sued. You never want to have lawsuits. But it does happen. And if you're not at home, if you put yourself as the Registered Agent on file, you could potentially one day get sued or have a lawsuit brought against you. And you know, the sheriff's office, someone will come to serve those papers. If you're served and you're not there, that becomes another issue. And so it's very very important. One, you can have, you can be almost straight, and that's fine, you have a home business, and then the office, even in a business office, if you're there from nine to five or eight to six, you can be your Registered Agent. But as far as having irregular hours, flexibility in your schedule. A lot of small business owners have irregular hours. They work all day. But they might have to, you know, schedule some times that they're not in the office. And during COVID, a lot of businesses shut down, we're Registered Agents. So our clients pay us to operate through the normal business hours. So even though COVID happened, we were still at our office. None of our clients got sued. So the entire building was empty, except for our office. So we heard a knock on the door, and that's one of our clients being sued. So that's a prime example of why you need a Registered Agent. 

If you do have your own physical location for your business, in case you do get served, you don't want to get served in front of your clients or your customers. I think that's important to separate those two things. And the worst-case scenario if that were to happen, it wouldn't happen in front of everybody else.

BIRD: Right. Right. I love this. This is so good and important. And I think like I said, it's not something that's talked a lot about because of what you said. It feels like it's unlikely that you're going to get sued, right? Unlikely that you're going to need papers served to you. But it's just like insurance. It's like, you don't think you need it until you do. And then when you need it, you're like, "Dang it", right? So I think it's so important to just really make sure you cross all your t's and dot all your i's and make sure that when you're filling out these forms and thinking about your business holistically. And again, you don't want to have to have in the back of your mind, oh, man, you know, what, if I get served these papers or I'm not there? Or you know, how do I need to best represent myself? You could literally just outsource this whole service, this whole operation, and clear that part of your mind and your energy to someone else so that you're able to really focus on what you're best in your business. I'm not great at Registered Agent stuff. I don't want to have to be tied down to my office, whether it's a home office or my gym business. We have classes throughout the day. We're not really open the whole day. So I don't want to have to feel the need for someone to be there, for me to be there, the whole day because of this, right? So it's just kind of more of a mindset too, I think, for entrepreneurs, especially new entrepreneurs. Because it's like I said, when I first launched our business, you know, our first businesses, this was kind of like a, oh, whatever. And now, this is actually really important. So I love that you brought that up.

And another thing with the home, and correct me if I'm wrong, that you can't put a P.O. box down.

BIRD: I get that question a lot. And you know, you want to put a P.O. box down to avoid having your home address be public. But you're not allowed to in certain cases. So it's great to have that, that Registered Agent to step in on your behalf.

STC: Correct. Because some people will have a P.O. box. But also with the P.O. box, also will be given a physical address which is not really a physical address. And they'll use that and it won't say P.O. box. But it'll have a physical address. It's going to a post office, and they'll try to use that. And but it doesn't work at the end of the day. They can put it on the paper. But at the end of the day, you have to have a physical physical address where people can be served. Because if you have that physical, that physical address, and P.O. box, the sheriff's office can't go to the post office and serve you.

BIRD: Right, exactly. Wow. Yeah, it's so true. I remember going through that same thing in my mind thinking oh, well. Because I got a letter from the post office saying you can get a street address for your P.O. box. Yeah. And it's like no, still, that doesn't work. You know, you don't want to put yourself in that situation. So I love that you brought that up.

So in terms of hiring a Registered Agent, when is the best time to do that? I'm thinking about entrepreneurs who are, you know, either in the launch phase. Like they have this idea. A launch date is set out ahead of them, and they're preparing to launch their business. And then we might have some entrepreneurs who are tuning in who have already launched their business that maybe kind of missed some steps or hasn't really thought about this. What would you say to them, in terms of when's the best time to hire a Registered Agent?

STC: Anytime before they file their LLC paperwork. Sometimes people will find a Registered Agent online. They haven't contacted them or paid for the services. But they'll file it online, form the LLC, and put the Registered Agent on there. And then, later on, pay for the service.

The first two weeks after forming is the most important time as far as when important documents come. If you file your LLC on June 1. Let's say by June 15 the Texas Comptroller's Office will start sending you your taxpayer number. And they only send that once, maybe two times a year. So if you don't have a physical address that you're checking mail at all the time, and you miss that, it's hard to get access to it again. So the first two weeks is when the most important information comes from the Texas Comptroller's Office as far as your taxpayer number if you apply for your sales tax permit. Those are in the first two weeks. I think, prior to forming your LLC and your business plan you have that set up. As far as before your LLC, before you form it, make sure you have the registration on file.

BIRD: Yes. And I will say from experience that those documents she's mentioning are so important. I can't tell you how many times my accountant has asked, "Can you give me the XT number or the RT number, whatever it is, from the people from the Comptroller's Office?" And I'm like, um, I know I got that paper somewhere in this mound of papers that I have. Right? But I love it.

I want to talk about your process because I'm a client of yours. And I have loved working with you. But you will send, there's like a portal where all the documents are. And you'll send an email saying, hey, there's a new document there. So I'm just saying for those listening. It might seem like, "Uh, I don't know if I really need this". You do because those numbers and those notices and in mailings you're going to be getting from the government and from different people is really important to have and keep. And it can be so much easier when it's stored with someone like a Registered Agent. So kind of talk through your process. If someone's listening to this and they're like, "I definitely want to work with y'all. This is great. I love it." What does that look like and how does it work?

STC: Just going back to when you asked about what was the best time to get a Registered Agent. She mentioned prior to formation, right? For some people that didn't choose a Registered Agent prior and they've already started their LLC or their nonprofit. It's still good to change to an actual Registered Agent beyond yourself. And for that, they could still choose us or choose another Registered Agent service or business. But then all we would do is change your registered address with the Secretary of State. So someone can still after formation, they can always switch their registered agent to someone else.

BIRD: I love it. I love that you brought that up, because like I said. I might have some entities that we might need to do that for where we switch the address. So just to back up for that. What is that process like? How much does it cost? Do you have any numbers or anything?

STC: Yeah, so our Registered Agent fee for the year is $100. For a change of Registered Agent address, and that's $115. It's an additional $1 because of the Secretary of State. When we go on the back end to change us as your new Registered Agent, the price is $15. Just an additional $15. Because that's the state's rate is $15. So it's $115 instead of $100 for the year. And then we do that on our end on the Secretary of State website. And then we just need like one piece of information to do that from our client, like a web phone number. And then we do that for them.

And with the portal that you have, all our clients have a client portal, our fee for the year is $100. And that includes every paper that we receive on your behalf, any documents we receive on your behalf is sent over to you. And we differ from other companies because some of the Registered Agent companies will charge a fee after, let's say, your first 10 documents. After the first 10 documents they charge per document. So for us, I mean, we're your Registered Agent. That's the purpose of you having us as your Registered Agent. So however many documents you receive, whether it's one document or 200 documents. The fees gonna stay the same. So that's, that's what you pay us for.

Every day, every morning, we check our mailbox here at the office. And any documents are received for my clients. We scan those, and then we upload them to the client portal. 

BIRD: So if someone was interested in signing on with y'all, would they'd go to your website? What would it be that process and then what could they expect? Which you've kind of talked about in terms of the portal and having access there.

STC: So on our website, we have different services and products you can purchase. And one, it'll say, Registered Agent for a new business. Or Registered Agent for an existing business. And as soon as you make that purchase, we will automatically be notified and send you a new client questionnaire. We find out if you're a new LLC or an existing LLC, the name of your LLC, your contact information. And then we'll reach out to you and we create your client portal.

And then you'll create your password for your client account. And then we'll put important information on there, like your name, your business name, your contact information that you shared with us. And then you'll create your password. And then you'll be able to log in anytime. And we have different folders for different things. So we have a folder for the Texas Comptroller's Office. A folder for Secretary of State or the IRS, any additional documents you have depending on your industry, or received documents on your behalf. And then whenever we get something, we scan it. We scan it and upload it to your account. And then we notify you that you have a document in there that needs to be viewed.  

And then just one more thing that is important cause I know before we talked a lot about being served. And that's, you know, important things not having someone to receive those documents on your behalf. But another thing for Registered Agents is compliance reminders. And so the key service that we offer are those compliance reminders because not all of our clients will get served. Some will and some won't. But compliance is for everybody. Every LLC or corporation has, you know, things they have to file every year. And we send reminders to our clients so they don't forget about those. And that's important.

And in regards to the franchise tax which is the last reminder that we send out to our clients. If for some reason they don't receive it, say if you don't have a Registered Agent. Or you're your own Registered Agent, you put yourself down. And then you receive a notice from the State Comptroller's Office that this is about to be due. But you know, you're not really sure what it is. We send out reminders where we also explain what this document is or what they're asking you to file.

And for some of our clients, they are trying to enter different industries, they're trying to get government contracts. And they go to try and get these contracts, but they're not in good standing with the state because they missed this important reminder. They didn't do this compliance, and now they can't get that contract yet. Now they have to pay these additional fees. And it kind of sets them back.

So within the franchise tax, if no tax to file report was due yesterday. And if you didn't file yesterday, today, it's $50. And you might not have even realized that it was due yesterday. If you're your own Registered Agent and you weren't paying attention to the due date, and you didn't pay yesterday. If you didn't file yesterday and you don't pay today, a few months from now or a year later, you'll try and get a government contract.  

Also if you're a nonprofit, you'll have to have a Registered Agent also. If you're a nonprofit trying to apply for a grant or get funded, they look up the information and find that your company has been forfeited, or your nonprofit has been forfeited because of a simple thing of not filing your franchise tax report that you missed.  And that you didn't even know it was forfeited. So there's just small things that can become big things a year down the road and cost you money.

So we talked about before LLCs, having a Registered Agent. Nonprofits also have to have a Registered Agent as well. So just something to keep in mind, as you realize later on, how it's going to affect your business. If you would have kind of invested in a Registered Agent in the beginning, it can save you money in the long run.

BIRD: Yes, yes to all of this. That is so true. And I love that you brought up the reminders because I was gonna bring that up too. I love getting the email reminders from y'all about the different compliance needs. And that's, again, something that as a business owner, there are so many things to do. And so many things to remember. You're trying to do marketing. You're trying to do sales. You're trying to do admin work and client work. And also janitorial, you know. You might be doing everything. And so to the extent that you can have another team helping you remember these very important things that, like you said, will bite you in the butt later, if you don't remember them, will cause you to have to waste more time, money, energy in the future if you don't handle them now. It's really huge. So I love that you offer this service.

And I love that you've been able to educate my audience on how important it is and how helpful it can be for their businesses. So that's exciting. I'm so glad to have had y'all on. I'm definitely gonna make sure to link all of your information in the show notes so that folks can learn more about you, choose to work with you. But let me know how can listeners connect with you best online?

STC: I would say our Instagram account is, I guess, the best way. That's where we post a lot of information. We will be posting more in the future because we have so much content and we want to get it out there because it's informative. Like you. You have so much content. If we go and we watch your content, podcasts, or your Instagram posts, and they're so informative. I feel like, you know, actually paying for this service. And but everything about it taking, you know, knowledge. Probably but I would say our Instagram account.

And it's @strategictrainingandconsulting, as well as our Facebook. And our website. Our website is the best place as well. And then LinkedIn. We'll be posting similar things on there as well.  

BIRD: Perfect.

STC: Well, one thing I want to add before we finish is one thing very important for new business owners. Whether we're your Registered Agent, you have another Registered agent and you choose someone else, or you just decide to be your own Registered Agent. When you're first starting a business, and you input your information on the Texas Secretary of State website, and you're first starting. Within those first three weeks, third-party agencies get contacting information. So the first couple of weeks, you're getting not only important mail. But also junk mail and mail from fictitious companies that try and mirror state agencies. And so if you're not familiar with the different types of documents that you're supposed to receive, you can easily be manipulated to paying for something that you're not supposed to. And that can be labor poster laws. That can be copies of your filings to other companies that try and mirror Texas agencies and you end up losing money. So that's just one thing to look out for.

Whoever your Registered Agent is, makes sure you know what's happening, also what you're going to receive, and that it's coming from the right government agencies. They can get the address. They can get that logo. They're getting really good at you know, mimicking things, replicating things. But on the outside of the mail it'll say Austin, Texas, as far as the address. When you open up the mail and it's saying to pay certain fees for new business filings. The address is in Chicago. So putting two and two together and being a new business owner. You don't know those things.

BIRD: No. Oh my gosh. I am so glad you brought that up. I know those listening can't see me. But I was like furiously nodding my head. Because it's so true. You get so much mail in the beginning. And it's hard to differentiate. You know, you kind of panic, like, oh, they're saying I need to pay this fee for this poster or whatever it might be. I don't know if this is real, or not. Then you're calling them. And now they have your number. They're calling you back. It's just a mess. So again, just another great reason to have a Registered Agent.

Ladies, I'm so glad that y'all came on the show. This has been so informative and helpful. Y'all are beautiful. I glad I got to see your faces. And I just want to again, thank you so much. And I'll be sure to make sure to link you said your website, Instagram, Facebook, and LinkedIn in the show notes. So for anyone listening, you can just scroll right on down to connect with Strategic Training and Consulting and hire a Registered Agent today. Yay. Awesome. Well, yeah, thank you so much for being on the show.

Super informative, right? I love the insights that these ladies brought as to why you'd consider hiring a Registered Agent and taking these tasks and worry off your plate so you can focus on the area where your business needs you most. Now you can find their contact information in the show notes to learn more.  

As always, thank you so much for tuning into Bird Means Business podcast. Make sure you subscribe on Apple Podcasts and follow us on Spotify. And I'd love for you to leave a review if this podcast has helped you in any way. Be sure to tell every entrepreneur you know about this episode so that they too can learn why they need a Registered Agent.

All right, talk to y'all next week.