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
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.