Key Takeaways

  • LLCs in New York must meet a strict publication requirement involving newspaper announcements.
  • The advertising process must follow Section 206 of the New York LLC Law, including submitting a Certificate of Publication.
  • Misleading or deceptive advertising can result in legal penalties for LLCs under both state and federal law.
  • Using terms like “free,” “guaranteed,” or “best” can invite scrutiny if not supported by factual evidence.
  • Industry-specific rules (e.g., financial services, health products) may require additional disclosures.
  • Online, print, and broadcast advertising must all comply with FTC truth-in-advertising standards.
  • Trademark infringement, false claims, and deceptive pricing are common risks in LLC advertising.
  • Hiring a lawyer can help LLCs navigate compliance and avoid liability in advertising strategies.

LLC advertising will drive sales to a business and increase its profit. However, there is a certain process to follow to make the most of the company's advertising. New York also has specific rules to follow when it comes to advertising the LLC, which are important to know.

What Is New York's Publication Requirement?

New York is one of only a few states that require LLCs that were recently formed to publicly announce their formation in two local newspapers once a week for six consecutive weeks. Even though there has been a decline in those who read newspapers and many challenge the requirement, it still stands.

The supposed goal of this requirement is to increase the number of limited liability companies notifying the public of their existence, but the statute isn't achieving its goal. More new companies are using a different business form or are forming their LLC in another state so they don't have to file an Application for Authority in order to do business in the state of New York.

What Is the Process?

There are several steps to follow in order to form a business in the state of New York.

  • Register the LLC with the New York Department of State.
  • Send in the New York Application for Authority or New York Articles of Organization by fax, online, mail, or in person.
  • Pay the fee of $200 (or $250 for foreign LLCs).

It typically takes seven business days to process the form plus the time it's in the mail. An extra fee can be paid for an expedited review when the filing is faxed. New York has rules in place that businesses that already registered or formed their LLC need to change who the registered agent is, or what the address is for service of process.

A publication needs to be made one time a week for six weeks in a row in two different newspapers within 120 days of the LLC being filed. One newspaper should be daily and the other should be weekly, and they need to be in the county where the LLC office is.

Legal Compliance in Advertising for LLCs

When creating marketing campaigns, an advertising LLC must remain compliant with both federal and state advertising laws. The Federal Trade Commission (FTC) requires that all advertisements be truthful, not misleading, and substantiated. New York State also enforces its own advertising laws that may impose stricter guidelines on LLCs operating in the region.

Key legal requirements include:

  • Truth-in-Advertising Laws: Any claims in your advertisement—especially those related to pricing, product performance, or health benefits—must be verifiable.
  • Avoidance of Deceptive Practices: Ads that omit critical information or make exaggerated promises can result in fines or lawsuits.
  • Industry-Specific Restrictions: Sectors such as finance, health, or legal services must adhere to additional advertising regulations, including required disclaimers and prohibitions against using specific terminology.

Staying compliant helps an advertising LLC maintain credibility while minimizing legal exposure.

Common Advertising Pitfalls for LLCs

Advertising LLCs should be cautious of common legal missteps that can derail a marketing strategy. These include:

  • Misuse of “Free” Offers: Promoting a service or product as "free" without clear terms can be considered deceptive if the customer incurs hidden costs.
  • Unsubstantiated Superlatives: Phrases like “#1 service” or “best in the market” must be backed by legitimate rankings or consumer surveys.
  • Bait-and-Switch Tactics: Advertising a product at a low price without intent to sell it as advertised may violate consumer protection laws.
  • Non-Disclosure of Affiliations: Influencer marketing and endorsements must clearly disclose any financial relationship between parties.

Understanding these pitfalls is essential to protect the LLC from consumer complaints or enforcement actions.

Rules for Publishing Notices

If the company doesn't choose which newspapers in which to publish, the County Clerk will designate them instead. The summary of the LLC's foreign qualification or articles of organization must be published. According to Section 206 of the New York LLC Law, the notice must include the following:

  • The date when the LLC was formed and filed
  • The main business location or physical street address
  • A statement saying that the New York Secretary of State is the agent for service of process
  • The name of the LLC
  • Which New York county the LLC office is in
  • The purpose of the business

Once the notice has been published for six weeks, each newspaper will give the company an Affidavit of Publication. This will be filed along with the Certificate of Publication and a $50 filing fee to be sent to the Department of State. The Certificate of Publication is a brief form and will be provided by the Department of State for the limited liability companies to use.

Be careful to check you are using the correct form, as there is a New York Certificate of Publication for both domestic and foreign LLCs. This will take about seven business days to process. While it's unclear what the exact reason is for the publication requirement, it's thought that the newspapers get a financial benefit out of the LLCs that publish their announcements in them. The County Clerk also keeps a list of newspapers that meet the strict requirements for publication and circulation.

The requirement for publishing forces an LLC who wants to do business in New York to pay a formation tax that is state mandated. This goes to a private print publication, who sets the price. For 24 hours, the public has access to the database that has information on every business in New York.

Periodicals are the only beneficiaries that LLCs in New York must pay in order to publish an ad that's fourteen lines. They will get two extra weeks of revenue.

Online and Social Media Advertising Considerations

For an advertising LLC promoting its services online, special attention must be given to compliance on digital platforms. The FTC applies the same truth-in-advertising standards to digital and social media ads as it does to traditional formats.

Best practices include:

  • Clear and Conspicuous Disclosures: Any disclaimers or conditions should be easy to read and appear close to the claim they qualify.
  • Hashtag Compliance: Use proper hashtags like #ad or #sponsored in influencer partnerships to ensure transparency.
  • Ad Targeting Rules: If using data for ad targeting, LLCs must ensure compliance with privacy laws like the CCPA or GDPR where applicable.
  • ADA Compliance: Digital advertisements, including videos and websites, must be accessible to users with disabilities under the Americans with Disabilities Act.

Failing to adhere to digital compliance standards could lead to penalties or the takedown of promotional content.

Intellectual Property Considerations in LLC Advertising

LLCs must be cautious not to infringe on others’ intellectual property rights in their advertising. Unauthorized use of logos, slogans, or copyrighted images and music can result in legal claims.

Tips for staying compliant:

  • Use Licensed or Original Content: Ensure all visual, audio, and written materials are either created by the LLC or properly licensed.
  • Avoid Trademark Confusion: Don’t use business names, product names, or logos that are similar to a competitor’s in a way that could confuse customers.
  • Secure Permission for Testimonials: Always get written consent before using customer reviews or testimonials in advertising.

These steps help prevent legal disputes and establish trust with your target audience.

Benefits of Hiring an Attorney for Advertising Compliance

Navigating advertising laws can be complex, especially for LLCs looking to grow quickly while staying compliant. An experienced business attorney can:

  • Review your advertising materials for legal risks.
  • Advise on federal and state regulations specific to your industry.
  • Help draft clear disclaimers and terms.
  • Provide guidance on intellectual property usage and privacy laws.

If you're unsure about your LLC’s advertising approach, you can find a qualified attorney through UpCounsel. Our network features top-tier legal professionals with experience in marketing law, FTC regulations, and startup compliance.

Frequently Asked Questions

1. Do LLCs need to follow the same advertising laws as corporations? Yes, LLCs are subject to the same federal and state advertising regulations as any other business entity.

2. Can an LLC get fined for misleading advertising? Absolutely. Misleading or deceptive ads can lead to FTC penalties, state enforcement actions, and even consumer lawsuits.

3. What should be included in an online ad disclaimer? Online ad disclaimers should clarify any limitations, conditions, or required purchases related to the offer being advertised.

4. Is social media advertising regulated for LLCs? Yes. Social media promotions must follow FTC guidelines, including proper disclosure of endorsements and truthful advertising.

5. Can I use a competitor’s name in my LLC's ads? Only under limited conditions, such as comparative advertising that is truthful and non-deceptive. Otherwise, it may lead to trademark infringement claims.

If you need help with LLC advertising, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.