Unlike some accountants, I don’t fear change or resist it. So, when I decided to move away from my sole-proprietor model in favor of an LLC, I had no reservations. I created an account at NYS Business Express and filed my articles of incorporation. Then I went about all the steps to ensure my corporation is compliant with local laws.
One of the more unusual requirements in NY is to publish your articles of incorporation (or a notice of incorporation) in public newspapers associated with the county in which your corporation does business. It’s an unusual requirement and it would make any small business owner feel a little queasy about how to do publishing the right way. So, when I started receiving mail advertisements from companies looking to take this task off my plate, I must admit that it felt a little tempting. However, my instincts told me that these services are probably rip-offs, so I thought I’d put them to the test.
What is the NYS LLC Publishing Requirement?
Section 206 of New York’s Limited Liability Corporation law requires that the articles of incorporation or a notice of incorporation needs to be printed in two different newspapers within 120 days of the effectiveness of your LLC formation. These newspapers are designated by your county clerk in the county that your offices are located (the office you designated in your articles of incorporation). If that sounds simple, just wait, because New York definitely knows how to make something that sounds reasonable very complex.
For the two newspapers, one needs to print daily and the other weekly. Each newspaper needs to run the notice or your articles of incorporation for 6 weeks straight. At the end, the newspaper will provide you with an affidavit of publication. You’d then send the two affidavits and a completed Certificate of Publication back to the state with a check for $50 to finalize all of this hoopla.
It’s Complex, But Is It Hard?
Clearly, it’s the complexity of the requirement that makes this all sound so arduous, but is it really hard? I figured most newspapers would print these regularly and would be able to help me. I bet that all this complexity was actually really simple and my bet paid off.
I started by taking a quick look at the Livingston County Clerk’s webpage. Supposedly, they designated newspapers for the notices. At the bottom, I found a list of both daily and weekly publications here. https://www.livingstoncounty.us/DocumentCenter/View/15/LLC-Designated-Newspapers?bidId=
That was easy enough, so I took the next step and contacted the newspapers. Within two hours, I had quotes for publication. The best deal came from Genesee Country Express (weekly) and Hornell Evening Tribune (Daily). They were both owned by Ganett, so I only needed to work one contact. In total, I spent a little under $100 for all the publications. Livingston County News quoted me between $50 and $60 for just one publication which was a little more expensive.
Now the state also charges $50 to file the certificate of publication, bringing the total cost of this requirement to just under $150. I wonder how this will stack up against my mailbox spam offers?
Windsor – $210: Maybe
The fastest company to my mailbox was Windsor “where fast is accurate.” I received their mail two days after I submitted my filing. Maybe since they are in Albany, they have a rep in a closet at the government file room typing out letters in real time as corporate articles are filed?
All kidding aside, Windsor definitely was offering the best price at $210 (includes a $40 discount). It would be a little more than $60 extra in costs or 40% more than doing it myself. The breakdown of fees would have me paying $75 per paper instead of $50 and $10 for processing.
Honestly, this might be reasonable in locations where newspapers are more expensive (assuming they don’t dramatically increase pricing in other counties). I’m docking them points for soliciting credit card information on a piece of paper. C’mon people, it’s 2020.
Blumberg Excelsior Corporate Services – $270ish?: Hell No
Next came Blumberg or Blumberg Law Products or Blumberg Excelsior Corporate Services. I don’t really know what their real legal name could be because of all the conflicting branding. They are Voted Best 2015-2019 legal notice provider, according to their poorly marketed letter. What they lack in marketing savvy they make up with varying fonts, bold text, and check marks. I love checkmarks!.
Their pricing ranges from $270 up to $1,189! It’s based on county and not all counties are listed. So at best, Livingston county could be 80% more cost to save 10 minutes of work. Don’t want to wait to find out if you pay $270 or $1,189? You can do a $100 downpayment, like it’s LLC K-Mart Layaway. I’d hate to be the guy that hopes he’s getting a bill for $270 but instead gets $1,189.
This is obviously a rip off. I can’t imagine paying $1 more than $270 and I’d much rather go with a service that is $60 cheaper anyways (Windsor). Points off again for asking for a credit card through the mail like it’s 1999.
USA Corp – $240: Just Regular No
They are “Incorporating America” through the mail and also on the very top of my Google searches! Unlike their faster post office competitors, they aren’t saying what they are charging. I had to go to a website and enter information to find out. I’ll likely receive phone calls and spam forever.
After a promo code, they quoted me $240 for Livingston County. Although, they promise to match their competitors prices. However, I’m docking them points since it took me longer to get the price than it did to just get the publishing done myself. They also take credit cards on paper, sigh.
Final Thoughts
These are definitely scams. Why in the world should they get paid between $60 to $1,036 extra for contacting two newspapers on your behalf? If for any reasons you have fears about competing this requirement, give Friendly Neighborhood Bookkeeping a call at (585) 999-5455. We’d be happy to help you set up your publications for a $26 processing fee (publishing fees and state fees would be separate). Or you could send this to USA Corp and get their rates knocked down dramatically, since they offer a price match and all. However, this is probably a good do-it-yourself job for most people who have a few minutes to spare.