State of New York has a mandatory requirement of publication for Limited Liability Company (LLC) to register its formation. The LLC has to place notices in two publications for a period of six consecutive weeks with some basic information about its formation which should be done within a period of 120 days. As this is a hassle and costly thing, many businesses postpone it which may result in penalties. You can refer to https://windsorcorporateservices.com/product/publication-order-form/ for getting the form.
What should be done?
It is necessary for the newly formed LLC to publish in 2 local newspapers for a period of 6 weeks with some basic information like name of the LLC, address, contact details, county of LLC in which their office is located etc., which should be assigned by the country clerk in which the new LLC comes under.Upon completion of 6 weeks of publications, affidavits of the publication as issued by the newspaper should also be submitted to NYS Department of the state within a period of 120 days. This completes the publication requirement and the LLC comes in the compliance of the statute. This whole procedure of publication is often costly including an amount of $50 to the Department of State as they file for certification of publication.
This publication cannot be in the form of an advertisement and should be according to the strict rules of the Statute.
Benefits of LLC publication:
- As the new LLC prepares itself for the publication, there are few steps involved in it like, reserving a name for the business, preparing articles on formation of the business, creating agreements between the members of the LLC, obtaining permits and licenses required for the business etc. While these are necessary steps involved in publishing, it is not necessary for these to be submitted to the NYS department. But having these documents in place is always beneficial to the LLC.Refer to https://windsorcorporateservices.com/product/publication-order-form/that can help you with publication.
- Though these steps seem to be a lot of hassle, it is actually less registration paperwork as compared to the corporation.
- There is a protection to the members of an LLC for any actions and business decisions of the LLC, which means that depending on the state shield laws, the members of the LLC are protected from either some or all liabilities of any acts and debts of the LLC. But this does not mean that they get shielded from any wrongful acts of themselves or the employees.
- In case the LLC elects to be taxed as a partnership, it may allocate and decide on allocation of sharing income/profits/loses/credits etc. as per how they see it. There are very few restrictions to this regard.
Though LLC publication is a hassle and costly, it is still beneficial to the members of the LLC with regards to fulfilling the laws of the statute first and avoids the penalties. Apart from that it is also good for the members as it helps them and making many decisions that may otherwise take some time.