Foreign LLC Costs in NYC are Killer

[Scott Kelly]

Hi. Was wondering if someone could offer some advice. We own a rental property in St. Louis, live in NYC and have recently setup a Delaware LLC to put the rental property under in order to protect our personal assets for liability purposes. We need some kind of bank account, whether business checking or escrow, for the LLC to manage funds for the rental property.

Here's the problem. New York has a publishing requirement for all LLCs, local or foreign, where you have to proclaim your business in two or three local publications for six weeks before you can become a good standing LLC in NY. This publishing can cost anywhere up to $1800 depending on what publications the county clerks office randomly assigns to you. That's a chunk of change. I assume I need this good standing in order to get a bank account in NY, but is it really necessary? Are there any other recommend options? Our cash flow is almost non-existent with the property as it is (actually negative after a recent vacancy and repairs). These additional costs aren't helping. Any advice or suggested alternative for liability protection would be appreciated, even if it's to say that we have no other option. Thanks!

[Scott Kelly]

Again, thanks to everyone for your responses. I met with my account for tax season and asked him what he recommends. He said, as some of you have, that the biz is in St. Louis, not NY, so NY does not have to be involved. I just get an EIN for the LLC and open a biz checking account. Thanks again.