Did you know that in New York, you have to publish the registration of your company before you can enjoy your corporate veil? Here is how it works:
Back in the day before the invention of computers and whatnots, there was only one way to inform the public you had formed a company. It was through publishing an announcement in two local papers each week for six weeks. It was enough time to inform the public, at the end of which you could now conduct business as usual. When technology advanced, this form of communication took a backseat, and people now enjoyed searching for firms on state websites. However, in New York, the law did not change and still has not. For this reason, even with paper readership dwindling, you still have to follow through with a publication.
There have been several attempts to do away with this New York state publication requirement, with businesspeople claiming that this requirement hinders startups from getting into business. They argue that with the ease of finding information online, there’s no need to put entrepreneurs through this process. They have not succeeded. For now, you have to abide by the law, failure to which you can lose out on some rights you need to enjoy.
You may feel tempted to skip this NY LLC publication requirement process and go on with your business once you have formed it. Doing so might seem like a short cut but it would cost you in the long run. Keep in mind that the publication is pursuant to the law. As such, if you do not comply with the guidelines, the authorities are well within their rights to keep you from conducting any business. That means that all your transactions would come to a stop. Imagine how bad that would be if you were in the middle of clinching a good deal. Any contracts you have made before this suspension will remain intact and all parties will be held accountable to their part in the agreements.
However, you will lose the right to obtain a certificate of good standing. Without this, you may fail to attract investors or suppliers who wish to work with your company. They may question the trustworthiness of your company. Additionally, you will lose the right to sue in a court in the state. That means that if you get into any legal trouble, you can no longer enjoy a corporate veil.
The situation is not all bad and you can remedy it. Even after the 120 days have passed, you can still publish your company in a paper. Once this goes through, you will have the opportunity to continue with your business almost as if you had not faced suspension.
Many people work with the law and do what’s required of them. Some find the law to be quite costly given that they have to fork out more money to keep up with the guidelines. It is especially so when you are working with a small budget and want to reduce the startup costs. All this is understandable. However, not following the rules is risky for you as you would not enjoy corporate protection and can land into some murky territories.
The law is clear about what you should include in the notice. Luckily, there are many publication requirement LLC New York samples you can borrow from to get yours ready. If you have the time, you can do it yourself by contacting the county clerk in your office’s county and providing them with the receipt details via mail. You will then get information on where you can publish. You will need to contact the papers and arrange for payments and posting dates. Once you have gone through the notification processes, you will get your certificate of publication and affidavits.
If doing all this back and forth yourself feels like a lot of work, you can opt to hire an attorney. Keep in mind that this will add to the startup costs. Alternatively, you can use a professional service to follow up on this for you. We will cover the best professional services at a later step.
Whatever method you choose, keep in mind that the company’s management is tasked with complying with the law.
How does it all work?
The Times Union
Phone: (518) 454-5543
You will part with $65.00 for all 6 weeks plus the Affidavit of Publication.
The Altamont Enterprise
For this notice, you will $1.92 per line for 6 weeks plus an extra $11.00 to account for the Affidavit of Publication.
The Department of State, Division of Corporations,
One Commerce Plaza, 99 Washington Avenue, Suite 600,
Albany, NY 12231
The fee for filing the Certificate of Publication is $50.
If you wish to post your LLC publication requirement NY in this legal paper, you can contact their staff who will guide you on the processes. Not only will they type and schedule the document but they will also provide you with a notarized proof of publication.
You will come across many sites offering to help you with the New York LLC publication requirement at low costs. Before agreeing to any terms, you should be aware of their services and what previous customers have to say about them. Some of the reputable services include:
Being compliant with the law is important for any business and hiring a pro to handle this side of things would be a great idea. If you feel that you can handle the New York’s publication requirement paperwork by yourself or need to save on costs, you can always do it yourself.