Setting up a new company is an exciting and often worrisome time – when you’re forced to figure out how and where you will operate, focus on getting vital supplies and logistics organized in your new office, plus deal with about a dozen other things. However, whilst you focus on your immediate concerns and demands, you should remember that no business functions in isolation – each company is part of a bigger community and always answers to some sort of government authority.
For LLCs that open their doors in New York (AKA Limited Liability Companies), it doesn’t take long for the government to come knocking. Naturally, you have local laws you need to comply with, but New York also has one particular law relating to publishing that sets it apart from most other U.S. states.
What is LLC publishing?
LLC publishing is the process of submitting information about a newly-formed LLC for publication in a local newspaper. It’s more of an official notice than something newsworthy, so you generally won’t see these notices on the front pages of a paper or advertised/promoted in any particular way. In fact, LLC notices are usually dozens of small blocks bunched together with other notices about construction, zoning projects, obituaries, etc.
Why is publication necessary?
The publication requirement has existed in New York for centuries, whilst numerous other states have now dropped it (some didn’t even have it in the first place). The idea behind it is that residents of a community have a right to know about new businesses setting up shop in their area in order to be more aware of the potential changes this will bring.
For example, a businessman with a poor reputation or a potentially harmful line of business might want to go under the radar, but this requirement prevents it. For most businesses, though, this is just a formality that they have to take care of.
What will happen if you don’t publish?
New York law gives LLCs 120 days after the registration of their company to publish and confirm, with the potential penalty of a suspension of their authority to carry on. This does not mean that the company loses the right to conduct business, but it does set the company up for some legal hurdles if they are the target of litigation. Fortunately, the publication can always be done after the suspension and the very day that legal issues pop up – applying retroactively and validating the company’s authority even during the previous period.
How do you perform publication for an LLC?
Fulfilling this requirement takes a few steps. First of all, you have to fill out and submit a Certificate of Publication with a few other papers. You’ll also need to learn the names of acceptable newspapers for publications from your county clerk and submit your order with the papers.
According to the publishing requirements, the notice should be published in two local newspapers for six weeks in a row (one weekly newspaper and one daily). This will allow you to get an affidavit of publication, and then you can send a filing fee and submit all the amassed paperwork together. Some companies also hire intermediaries that act as registered agents who take care of the process entirely for them.