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New York to limited liability entities: publish or perish19/07/2006. Source: Nixon Peabody LLP. By Jennifer Arterburn
 After June 1, 2006 suspension of operations will be the penalty for any limited liability entity that fails to publish information about itself in two newspapers after formation. Importantly, the law applies to limited liability entities that are either formed under New York law or qualified to do business in New York. Failure to comply with the new publication requirement may leave owners of such entities open to potential liability.
The new law also forces limited liability entities to be more open about their ownership. In addition to basic information that limited liability entities are already required to disclose, after June 1 they will also have to include the names of the 10 active members with the most valuable interests in the company. As a result, a general partner of a private equity fund could be required to disclose the names of the fund's limited partners with the biggest stakes. In addition, if the general partner itself is organized as a limited liability entity, as most are, the same rules would apply to it.
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