The LLC Publication Requirement: New York State's Stubborn Rule That Just Won't Go Away

If there's one thing about New York that most people can count on, it's that we like to stand out, be unique, and sometimes add complex layers to simple situations just for the fun of it. You certainly can't be called the "Greatest City in the World" without some added complications. Given New York's reputation, one of the most stubborn law's that just won't go away is the Limited Liability Company publication requirement. In fact, we are the only State in the entire country that still has this step in the LLC formation process.

According to the New York Limited Liability Law, if you decide to form an LLC in New York State, you must publish your newly formed LLC in two local newspapers (one daily and one weekly newspaper) for six weeks, in order to formalize and complete the formation process. In fact, you must complete this within 120 days of filing the articles of organization. A typical publication notice will include: (1) a notification of the name of the LLC and date it was filed with the New York Department of State, (2) the county where the LLC is located, (3) a designation of the Secretary of State of NY ("SSNY") as the agent to accept legal process on the LLCs behalf, (4) the address where the SSNY can mail the legal process, (5) the purpose of the LLC, and (5) the dates that the notice will be posted by the particular newspaper. If you open most local newspapers and flip to the last few pages, there is usually a section called "Legal Notices," which is where you will likely find these publications.

Once the publication process is complete and the notice has run for the six-week period, each newspaper will send you an "Affidavit of Publication," which you then must file along with a "Certificate of Publication" and relevant filing fee with the New York Department of State. This officially completes the LLC formation process. What makes this rule so stubborn and frustrating is that it is extremely cost prohibitive in New York City. Depending on the county where your LLC is located, the fees associated with publishing the LLC can be astronomical.

As the most affordable borough, Staten Island based LLCs can look to spend roughly $500 or more on publication fees. In the other boroughs, the impact of the fees is quite significant. For example, in Manhattan, the publication fees can easily range from $1,200 - $1,450. Compared to the initial filing fee for the LLC, which is only $200, the publication process altogether just turns an otherwise affordable matter into an expensive endeavor.

Unfortunately, this process isn't going anywhere, anytime soon, so for those looking to start a new LLC in New York City, you should take these costs into consideration when budgeting for your company. If you have any questions about the LLC publication requirement or setting up a new LLC, it is encouraged that you consult with a local business attorney who can best advise on the formation process.

Disclaimer: This blog post and similar posts are not to be considered as providing legal advice. The discussion here is meant for educational and informational purposes only and shall not create an attorney-client relationship with the readers of this content.