3 ms·

This varies extremely across various states and cities. If you live in new York city for example, to incoroerate an llc, you need to take out a section in a new

by hak8or 7y ago

This varies extremely across various states and cities. If you live in new York city for example, to incoroerate an llc, you need to take out a section in a news paper to say you created an llc of name so and so, every day, for like a week, within a year (if I remember right) of your incorporation. Across three news papers too. If you go "OK fine, I will incorporate elsewhere, like Delaware", then NYC views you as a foreign investor and mandates you still do the news paper thing. Here is the kicker though, the news paper you are allowed to do this in vary based on county. You live in queens? That's a solid few thousand dollars. Brooklyn? Also a few thousand. Staten island? Less than $300. If you do not do this then the enforcement mechanism is that when you get sued, then a court can take back the corporate veil perk of your llc (llc is void so it turns into a sole proprietorship I think) and go after your personal assets if you loose a lawsuit.

cddotdotslash 7y ago
It's a really annoying process, agreed. If you're looking to setup an LLC in NYC, I've heard you can form it upstate and do the newspaper requirement there (where publication is cheaper) and then transfer back to the city.
CPLX 7y ago
> If you do not do this then the enforcement mechanism is that when you get sued, then a court can take back the corporate veil perk of your llc (llc is void so it turns into a sole proprietorship I think) and go after your personal assets if you loose a lawsuit. This is a common misconception. In real life there is no actual penalty for not placing the ads. In the event you’re challenged on it, the deficiency could be remedied by immediately placing the ad, but that literally will never happen. It is, in fact, a special interest giveaway to some local publications, but there’s no teeth to the law.
- mieseratte 7y ago
  > It is, in fact, a special interest giveaway to some local publications, but there’s no teeth to the law. So you have to hope no one wants to come after you? What would happen if this were actually in court? Overturned for lack of enforcement?
  - CPLX 7y ago
    It has actually been in court. The deficiency can be remedied by publication and it’s fully retroactive. So there are literally no consequences at all to ignoring it. https://eminutes.com/what-happens-if-you-ignore-new-york%E2%80%99s-llc-publication-requirement https://eminutes.com/what-happens-if-you-ignore-new-york%E2%... https://www.newyorksmallbusinesslaw.com/new_york_small_business_l/2017/01/failure-to-publish-llc.html https://www.newyorksmallbusinesslaw.com/new_york_small_busin...

by hak8or 7y ago

cddotdotslash 7y ago

It's a really annoying process, agreed. If you're looking to setup an LLC in NYC, I've heard you can form it upstate and do the newspaper requirement there (where publication is cheaper) and then transfer back to the city.

CPLX 7y ago

> If you do not do this then the enforcement mechanism is that when you get sued, then a court can take back the corporate veil perk of your llc (llc is void so it turns into a sole proprietorship I think) and go after your personal assets if you loose a lawsuit. This is a common misconception. In real life there is no actual penalty for not placing the ads. In the event you’re challenged on it, the deficiency could be remedied by immediately placing the ad, but that literally will never happen. It is, in fact, a special interest giveaway to some local publications, but there’s no teeth to the law.

mieseratte 7y ago
> It is, in fact, a special interest giveaway to some local publications, but there’s no teeth to the law. So you have to hope no one wants to come after you? What would happen if this were actually in court? Overturned for lack of enforcement?
- CPLX 7y ago
  It has actually been in court. The deficiency can be remedied by publication and it’s fully retroactive. So there are literally no consequences at all to ignoring it. https://eminutes.com/what-happens-if-you-ignore-new-york%E2%80%99s-llc-publication-requirement https://eminutes.com/what-happens-if-you-ignore-new-york%E2%... https://www.newyorksmallbusinesslaw.com/new_york_small_business_l/2017/01/failure-to-publish-llc.html https://www.newyorksmallbusinesslaw.com/new_york_small_busin...