General Area in 11372>Question Details

Shirley, Home Buyer in 11373

Forming a LLC in New York

Asked by Shirley, 11373 Sun May 13, 2012

NY law requires to publish a copy of article of organization in the newspaper for 4-6 weeks and then a Certificate of Publication, with the affidavits of publication of the newspapers attached, must be submitted to the New York Department of State. My question is do I need to wait until the certificate of publication to be filed to start buying property using the llc name or I can use the llc name after the department of state approved the name and assign the EIN? It says we have 120 days to publish the article in newspaper. Thank you so much in advance!

Help the community by answering this question:

Answers

4
I would recommend meeting with your personal accountant first who can advise you on the different steps you can take.
0 votes Thank Flag Link Wed Nov 12, 2014
LLC is expensive in NYC because of the publication requirements, the cheapest I have seen is $1300, wheras corporation creation will run you like $150. You can achieve the same ends by forming a corporation and then transfering it to an S corporation.

More importantly, whether or not you use a Corp or an LLC, you will have to get approval beforehand by the bank to buy the property through an LLC/Corp structure if you intend to use a mortgage, or afterwards approval AND file a with the court to legally change ownership afterwards. Either way should be no problem if you are plunking enough money down, but be aware that although it offers you liability protection, either one (LLC/Corp) also increases the tax-filing hassle factor.

Another way you might consider is to max out liability on your home, and rental, and then ask for an umbrella liability policy. They might require that you park your car insurance with them as well.

I disagree with Delaware or Nevada filing because then you have to file taxes from those states, and beg for authority from NYS to operate here. If you are forming a company to sell the newest hottest widget, maybe...but for liability protection for rental properties probably not worth the hassle.

Antolin Du Bois, CFP®
0 votes Thank Flag Link Thu Jun 21, 2012
If you haven't already formed the LLC in NY you may want to consider incorporating in friendlier states such as Delaware, or Las Vegas. You would still be able to do business in all states, you would just file your taxes a little differently.
0 votes Thank Flag Link Mon May 14, 2012
In order to best protect yourself, it's really in your best interest to consult with an attorney.....
0 votes Thank Flag Link Sun May 13, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer