Although it seems relatively inexpensive to form an LLC and as you look online you initial assumption would be correct. However, the online companies fail to tell you the requirements or downplay the costs of publication of your LLC. So here is the real facts:

in New York, a Limited Liability Company must publish, within 120 days of its formation, a notice in two general-circulation newspapers (one daily, one weekly) in the county where the LLC was formed. The notice has to run once a week for six weeks and include a number of facts concerning the company and its formation. If an LLC doesn’t fulfill the publication requirements, the company’s authority to do business in New York can be suspended.

The costs of publication vary widely from county to county, ranging from around $300 in some counties to over $1,600 in New York County (Manhattan). Generally, publication costs are higher “downstate” (the five boroughs of New York City, Westchester County and Nassau and Suffolk Counties on Long Island). Publication costs depend entirely on the advertising rates charged by the newspapers that are designated by each county clerk for publication.

Because of the costs imposed by the publication requirement, business owners should think twice before forming an LLC in New York, particularly in the downstate counties.

This entry was posted in Business & Individual Tax Services. Bookmark the permalink. Post a comment or leave a trackback: Trackback URL.

Post a Comment

Your email is never published nor shared. Required fields are marked *


You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>