Ask HN: Can you reduce New York LLC publication fee by using a registered agent?

7 pointsby drcvor 14 Jahren10 comments

I have a question around creating a LLC in New York City centered around the publication requirement of LLC's in New York state. This publication requirement means if your LLC is registered in New York City you pay approx. $1,000-$2,000 in fees to newspapers. The key question is can I use a registered agent to meet the publication requirement in a location outside the city of New York but in New York state thus avoiding the higher newspaper fees of New York city. Then change the address to "real address" of the business to the location in New York city.

I'm looking to use this service: http://www.northwestregisteredagent.com/new-york-llc-publication.html

Is this approach legitimate? Has anyone else used this service?

Situation - Company business will be publishing mobile apps - iOS & Android - 1 person company - no employees - Will not be seeking investment or partners - Lives in New York City (Brooklyn) - Will be writing the software in New York City

Why I've chosen LLC - Not having to publish under my own name in iOS store - Liability protection afforded to me by LLC (realize this is a small risk in app publishing, but I'm risk adverse) - Appears to have the least paperwork for any legal entity providing me with limited liablility

My research shows To setup an LLC in New York (as single member LLC) I need to: - Pick a name not in use for LLC - File articles of organization + operating agreement (online) - $200 - Publish in 2 news papers, one daily, one weekly (desigated by the County Clerk) for 6 weeks in the county where business will be (in my case Brooklyn/Kings County) - approx. $1,000 - $2,000 - File Certificate of publication (received from newspapers) after 6 weeks - $50

There doesn't appear to be any rule in the law around publishing that says you have to republish if you change address: http://public.leginfo.state.ny.us/LAWSSEAF.cgi?QUERYTYPE=LAWS+&QUERYDATA=$$LLC206$$@TXLLC0206

3 comments

debaclevor 14 Jahren

Those publishing fees are extortion! I complained when I had to pay $150 (Upstate NY).

Also, IANAL, but I have received indication in the past that an LLC with a single member is at times treated differently when the shit hits the fan than an LLC with two or more members.

codegeekvor 14 Jahren

From what I know, you can be the registered agent for your own business as well. I recommend talking to a CPA in New York who can discuss your case. These things are complicated and I can tell you being an S-corp owner.

gee_totesvor 14 Jahren

+1 for talking to an accountant. If I had talked to my accountant when I started my business, I would have saved myself money and time!

codegeekvor 14 Jahren

definitely. Also it is very important to talk to a good accountant who handles your specific cases. When I incorporated intially, I used an accountant who even though helped with the paperwork, did not advise the right structure etc. for business based on my individual case.

gee_totesvor 14 Jahren

Yes, IANAL, but I have incorporated an LLC a few times in NY myself.

I live in Queens, and the LLC was incorporated in Queens, and our publishing fees ran about $1200.

Best to find a registered agent in Albany or somewhere with cheap newspapers and incorporate there.

But an even better plan is to go over this with your accountant, b/c where you initially incorporate may change your taxes, etc. Plus your accountant will know a heck of alot more about structuring an LLC for taxes, etc, than you.

Or another plan is to just incorporate now, forget about doing the LLC registration (you have 180 days legally), and hopefully make enough money off your app to pay the incorporation costs.

If the app busts, just close down the company and be happy you took advice from some random guy on the internet who was not a lawyer and saved you $1,000-$2,000.

I don't know anything about these northwest registered agent people other than that they are good at SEO.

But seriously, the best thing to do is talk to your accountant.

drcvor 14 Jahren

Awesome thanks. In retrospect would you have gone the registered agent route? Do you have a recommendation for an accountant? I don't have one, just moved to NYC. Also what would they charge to answer a question like this (understand you may not be able to answer the $ part)

gee_totesvor 14 Jahren

Possibly I would have gone the registered agent account, as long as the price was close to how much it would cost to register it myself, and the registered agent was someone recommended to me personally (not found on the internet).

I've found that many registered agents will also send you a bunch of crap (official letter heads, a seal stamper, binders with your company name) and then charge you $500 more for their service vs. doing it yourself.

For NYC, I would recommend Dmitriy at www.dgatax.com. The consulting fee to sit down and talk won't be very much (I'm thinking $50-$100).

drcvor 14 Jahren

Thank you, I was thinking of just using the registered agent to allow me to publish in Albany country instead of Kings county.

According to their website (NorthWest Registered Agents), you can publish in Albany newspapers for a total of approx. $95. That would save me approx. $900.

Their fee for this is $125.

codegeekvor 14 Jahren

talk to at least 2-3 accountants/CPA before you do anything. Good CPAs will always give you a free 20 min. consultant which should give you an idea of who to go with. Incorporating is not just about paperwork. It is about knowing the tricks of the business which any good CPA will know. I can recommend you talking to Allan at http://www.ratafia.com. I just fired my previous accountant and talked to him. To be fair, I have not started using his service yet but the things he discused on phone, made sense and made me realize how bad my first accountant was.

drcvor 14 Jahren

thank you.