NY’s LLC Transparency Act Signed by Governor; Chapter Amendment Pending State Legislature Approval

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On December 22, 2023, Governor Hochul signed the New York LLC Transparency Act (NYLTA) into law, with one major change to be made through a chapter amendment which will need to be approved next year by the state legislature. While the initial draft of the NYLTA establishes a public database that requires the disclosure of the personal name and business address of each beneficial owner, the chapter amendment is expected to provide that only Federal, State and local government law enforcement across New York State will have access to the database. This change was made to address privacy and security concerns raised by the real estate industry. The NYLTA will now even more closely track the Federal Corporate Transparency Act (CTA), which we discussed in our December 6, 2023, email blast.

The NYLTA, which will go into effect in approximately one year, will require that beneficial ownership reporting be done at the time of creating or first registering an entity with the State for those entities formed after the effective date of the NYLTA, while pre-existing entities (or previously registered entities) will have until January 1, 2025, to report such information. Unlike the CTA, which applies to various business entities, including corporations and LLPs, the NYLTA applies only to LLCs. Furthermore, unlike the CTA, the NYLTA requires entities that qualify for an exception to certify their exemption status.

Rosenberg & Estis, P.C. has established the expertise to help guide its clients through the CTA’s and NYLTA’s complex reporting requirements for both newly formed and pre-existing reporting companies.

If you have any questions, please feel free to contact your trusted Rosenberg & Estis, P.C. attorney or William R. Byers, Member of the firm’s Transactional Department, who authored the above