Photo Credit: Courtesy

Most people who start a business in New York assume the paperwork ends with the state. You file your Articles of Organization with the Department of State, you get your confirmation, and your limited liability company officially exists. But New York law adds one more step that catches many new owners off guard: before the job is really done, the LLC has to be published in a newspaper. A printed one.

Under Section 206 of the state’s Limited Liability Company Law, every newly formed LLC must publish a notice of its formation in two newspapers. The owner does not choose them. The clerk of the county where the LLC is located designates which papers qualify, one daily and one weekly, and the notice has to run once a week for six successive weeks. Each newspaper then issues a notarized affidavit of publication, and those affidavits are filed, along with a Certificate of Publication, with the Department of State. A new company has 120 days from its formation to finish the whole sequence.

Advertisement




That can sound like plenty of time. It often is not. The publication run alone takes six weeks. Because a weekly newspaper prints only once a week, getting the notice into its schedule can take a week or two at the start, and collecting the affidavits and filing the Certificate with the state can take another week or two at the end. Start to finish, the process usually runs eight to ten weeks, which leaves little room if something has to be corrected.

Mistakes are easy to make, especially for someone doing this once. LLC Publishers, a New York service that handles the requirement for business owners in all 62 of the state’s counties, sees the same ones again and again: owners do not know which two papers the county allows, or what the notice is required to say; some overpay without realizing it; others fill out the paperwork incorrectly, so the filing comes back for a correction or is rejected, which starts a round of calls and follow-ups.

“The requirement itself is finite, but getting it wrong eats time that new owners do not have,” said Sandeep Arneja, who founded LLC Publishers. “They pick the wrong paper, or a filing comes back rejected, and suddenly they are spending the week chasing it down instead of running the business they just started.”

 

Sandeep Arneja, founder of LLC Publishers

The track record suggests the step is manageable when it is done right. LLC Publishers has handled the publication process for more than 500 New York LLCs and has placed notices in over 110 of the state’s newspapers. Of the Certificates of Publication that the Department of State has ruled on, every one has been accepted and none has been rejected.

Cost is its own surprise, and it depends on the county. The newspapers a county designates set their own rates, so the cost varies widely from one county to the next. LLC Publishers’ price ranges from about $395 in the least expensive counties to roughly $1,795 in Manhattan, for what is otherwise the same legal step.

So why does New York keep a requirement that most of the country has dropped? Forty-seven states have eliminated newspaper publication for new LLCs; only New York, Arizona and Nebraska still require it. The law serves two purposes. One is public transparency, a public record that a new business has formed. The other, which matters to community newspapers, is support for local journalism: the fees a new LLC pays go directly to the designated papers in its county, a steady link between business formation and the local press that covers a community.

How the publication is handled is where services differ. LLC Publishers manages the entire process from start to finish, placing the notice in the county’s designated newspapers, collecting the affidavits, and filing the Certificate of Publication with the state. Because it operates in all 62 counties, it can publish in the county where the LLC is actually based, without changing the company’s county, address, or registered agent, and for a single one-time fee rather than a recurring charge. (It will change a company’s county only if the owner specifically asks it to.) The company describes itself as a compliance and document-filing service, not a law firm, and it backs the work with a refund if it does not deliver the Certificate. On Google, it holds a 5.0 rating across 79 reviews.

LLC Publishers (llcpublishers.com) was founded by Sandeep Arneja, who personally runs its publication workflow and previously built and sold two marketing-technology companies. For a new business owner, the takeaway is less that the publication requirement is a burden than that it is a defined, finishable step. Knowing what the law asks, and why New York still asks it, takes most of the mystery out of it.


Share this article on WhatsApp:
Advertisement