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IMPORTANT UPDATE: Please refer to our most recent post for the newest information on the New York LLC Transparency Act HERE.
Let’s cut to the chase. Before diving into the details, here’s what you need to know now:
Now, let’s explore the nitty-gritty details, as they are crucial if you or your clients belong to the “Who” category mentioned above.
What is the New York LLC Transparency Act, Really?
The New York LLC Transparency Act (NYLTA), effective January 1, 2026, establishes state-level beneficial ownership reporting requirements that mirror many aspects of the federal Corporate Transparency Act, imposing new disclosure requirements on LLCs formed or registered to operate in New York.
Filing Deadlines
For existing LLCs (formed or authorized before January 1, 2026), the initial BOI report or attestation of exemption must be filed by January 1, 2027.
For new LLCs (formed or authorized on or after January 1, 2026), the filing must be submitted within 30 days of formation or registration.
After the initial filing, all LLCs must submit an annual statement confirming or updating their beneficial ownership information, principal executive office address, and exemption status.
Who Has to Report?
Any individual (considered a “beneficial owner”) who meets either of these criteria:
Owns or controls at least 25% or more of the LLC’s ownership interests
Exercises substantial control over the LLC
The law applies to all LLCs except those that qualify for one of 23 exemptions that mirror the federal Corporate Transparency Act.
A few key exemptions include large operating companies (with more than 20 full-time U.S. employees, gross receipts of $5 million or more, and a physical office in New York), publicly traded companies, banks and credit unions, tax-exempt entities, and investment companies.
Important Note: Even exempt LLCs must file an annual attestation of exemption under penalty of perjury indicating which exemption applies. In other words, every LLC has to file something.
What Information is Required?
Each beneficial owner must provide:
Full legal name
Date of birth
Current home or business street address
A unique identifying number from an acceptable ID (U.S. driver’s license or passport)
What Are the Penalties for Non-Compliance?
Similar to FinCEN’s former federal reporting requirements, the consequences for failing to file or update your NY reports/ attestations of exemption are steep, increasing in intensity as time goes on.
After 30 Days: Entity is marked “past due” in state records.
After 2 Years: Entity is given a “delinquency” status in state records; requires filing a corrected report plus a $250 penalty to remove the status, along with daily fines.
Ongoing Penalties: Up to $500 per day for failure to file or update. In extreme cases of non-compliance, the Attorney General may suspend or even dissolve the LLC.
How is the New York LLC Transparency Act Different From the CTA?
The NY LLCTA has a few important distinctions:
Annual statement requirement: All New York LLCs (exempt or not) must file an annual statement to confirm or amend information submitted previously.
Private database: Information is maintained confidentially by the New York Department of State, not publicly accessible.
Applicant information: The NYLTA only requires beneficial owner information, not company applicant information.
No FinCEN ID equivalent: Unlike the CTA, beneficial owners and applicants will be required to submit their personal information.
How Can LLCs File?
All BOI reports and attestations of exemption must be filed electronically with the New York Department of State in the form and manner they prescribe.
What Can LLCs Do Now?
Stay on top of updates! One great way to do this is by following Secure Compliance on LinkedIn or bookmarking our website on your browser. We’re staying informed as policies are developed, and our content will be regularly updated to share what we’ve learned.
