As many of our New York LLC clients know, the requirement to publish in a New York newspaper for 6 weeks is almost unimaginable when you first hear about it. You are kind of speechless and in awe of how stupid a procedure it really is.
Most of the new LLCs are formed by people living in New York City. Thus requiring you to publish your LLC in the New York City papers. This typically costs about $800-1300.
OK, so that’s the rule and stupid in and of itself, but the really stupid thing is that if you formed a New York corporation, you don’t have to publish… Now that makes a lot of sense doesn’t it.
So new legislation gets submitted every year in Albany to abolish the requirement to publish new New York LLCs in a newspaper, but lobbyists from the newspapers buy their way into keeping the law.
No one could really come forward with a straight face and explain the benefit of forcing new startups to spend 1000 bucks with a New York City newspaper. But this law never goes away.
It sucks for our clients, but honestly we make real money off this absurdity. See the law doesn’t really say what a “Principal office” entails. There’s no description and clarity on this. SO, people hire us as their New York registered agent, and use our Albany address as their “Principal office” address, and then publish in the Albany newspapers with runs about 80 bucks total. So a savings of about $1-1200.
So we actually benefit as a company from the New York newspapers blocking a pro-business bill… but our clients sure don’t. What a waste of their time.
So far IL: 1 NY: 1