New York LLC Transparency Act (NYLTA)

On December 22, 2023, New York’s Governor Kathy Hochul signed into law Senate Bill 995B, enacting the New York LLC Transparency Act (NYLTA). The new law, which will be effective on December 21, 2024, is similar to the Corporate Transparency Act (CTA) that introduced a federal requirement for reporting beneficial ownership information. However, the NYLTA applies only to existing and newly formed or authorized LLCs doing business in New York, while the CTA applies to various entity types.

Under the NYLTA, affected LLCs must disclose the full legal names, dates of birth, business addresses, and a unique identifying number from an acceptable document (e.g., driver’s license or passport) of each beneficial owner, unless an exemption applies. The law shares with the CTA the same 23 exemptions from reporting requirements and definitions for the terms “beneficial owner,” “reporting company,” and “exempt company.”

LLCs formed or registered to do business in New York on or before December 21, 2024, must file no later than January 1, 2025. LLCs formed or registered in New York after December 21, 2024, must report at the time of filing of the articles of organization or application for authority. Additionally, exempt LLCs must file an “affirmative assertion of the exemption.” The reported information must be updated whenever changes occur, and the NYLTA’s database, like that of the CTA, will only be accessible to law enforcement and government agencies.

To read more on Senate Bill S995B, please go here.