Originally Posted by jason_kraft
Is the no-LLC rule in NY AGM 276.3 (I can't find the text of that code online)? I just find it hard to believe that a 20-C exemption would involve an investigation of the type of business entity, since that info is not mentioned anywhere on NY's home processor page.
Especially considering that you would probably get the 20-C exemption before you even file for an LLC, and from the perspective of Ag there is no functional difference between a sole prop and a single-member LLC.
You're right, Jason, it's nowhere to be found. I learned this from one of my students who had finished the paperwork for an LLC and then called for an inspection to get the home processor permit. She had the paperwork on her kitchen table when the inspector arrived. The inspector told her it was not allowed.
I called Albany to ask for clarification and after being passed through to several people who knew nothing, I was told by an irate supervisor that the intent of the exemption is to keep businesses small and therefore the LLC was not allowed. I don't understand the connection but that's what I was told.
Did you see the rule about no website presence? No presence at all because businesses need to stay small. They won't allow any presence, not even for communicating with customers. Hundreds of home processors have websites anyway, but two of my students actually got Cease & Desist orders for having one.
Now you got me all riled up... I wrote a couple of blogs recently about NY Ag & Mkts and their inconsistent enforcement. http://bakingfix.com/thefix/?p=5906