Attention New York City Entrepreneurs: Forming an LLC? Brace Yourself for an Antiquated Legal Requirement
When establishing a new limited liability company (LLC) in New York State, there’s a peculiar and somewhat outdated legal obligation – you must publish an announcement regarding the formation of your LLC in a newspaper. While this requirement may seem absurd in our digital age, it remains part of the law, at least for now.
The newspaper announcement itself is relatively straightforward. You’ll need to include basic details such as the name of your newly formed LLC, the date it was established, and the intended duration of the company’s existence (if specified). However, the real challenge lies in the publication logistics and associated costs.
In New York City, where I operate and assist numerous local businesses, the costs of complying with this newspaper publication mandate can escalate rapidly. You see, the announcement must be published in a newspaper that serves the area where your business is located. For NYC-based LLCs, this typically means major publications like The Daily News, which command premium advertising rates.
But there’s a catch – the announcement can’t be a one-and-done deal. You’re required to run the ad for two consecutive weeks to ensure widespread visibility. Imagine the expenses of running classifieds in a major NYC newspaper for 14 consecutive days. We’re potentially talking thousands of dollars just to fulfill this antiquated legal requirement.
Fortunately, there’s a strategic workaround to minimize these costs. When initially forming your LLC, you can list a registered agent’s address located outside of New York City, preferably in a less populous area upstate like Albany. By doing so, you can legally publish the LLC formation announcement in a smaller, more cost-effective local newspaper serving that region.
The savings can be substantial. Instead of paying thousands for a NYC publication, you could fulfill the requirement for as little as $200-$250 by publishing in an upstate newspaper. Once the publication obligation is met, you can simply file a change of address form with the state, officially updating your LLC’s address to your actual New York City location – without any further publication requirements.
While this legal hurdle may seem archaic, it’s an essential step for NYC-based entrepreneurs forming LLCs. By leveraging the registered agent address strategy, you can comply with the law while minimizing unnecessary financial burdens on your new venture.
