New LLC owners in the State of New York have long been frustrated with the requirement that they publish their Articles of Organization in local newspapers. The requirement must be fulfilled within the first 120 days of filing, long before the business has time to establish and bring in any funding. Many new business owners consider not publishing their LLC’s, but there are consequences to this decision.
The state requires that any new LLC in New York publish their LLC within the first 120 days. If the business does not decide to complete the publishing requirement they run the risk of being suspended, having their right to transact business in the state revoked and piercing the “Corporate Veil”, so to speak. This means that LLC becomes vulnerable to legal action without the asset protection that the legal formation provides.
Many other new businesses decide to wait to fulfill their publishing requirement until it is absolutely necessary. They don’t heed to the state’s 120 day requirement, they simply decide to begin the publishing process when legal action has been presented against them. In the past, this was allowed, and the LLC would begin the process once legal action was taken, and once it was completed they were protected. The state has since caught on to this loophole and now will not allow this. They do still allow new LLC owners to file even if they have passed the 120 deadline, so long as no legal action has been presented against them.