The New York LLC Transparency Act Requirement

In an effort to enhance corporate transparency and combat illicit activities, the Corporate Transparency Act (CTA) was put into effect on January 1, 2024, at the federal level. However, LLCs in New York need to be aware of the recent update specific to the state.

In December 2023, the New York governor signed SB 995 to enact the LLC Transparency Act, modeling the state’s reporting requirements after the federal CTA regulations.

Understanding the LLC Transparency Act

With the enactment of the LLC Transparency Act in New York, LLCs operating in New York will be required to report the same information filed with FinCEN under the CTA to the New York Department of State.

In fact, LLCs submitting beneficial ownership information (BOI) reports under the CTA can use the same form submitted to FinCEN to file with the NY Department of State. The new law defines “beneficial owner,” “reporting company,” and “exempt company” in the same way the CTA does, and the same exemptions apply as well. Information reported to the NY Department of State via the filing will be kept private.

The new law will go into effect on December 21, 2024. LLCs in existence on or before that date have until January 1, 2025, to file an initial report. 

Fulfilling Your BOI Reporting Requirement

In essence, complying with the New York LLC Transparency Act, or the federal CTA, doesn’t propel your business forward. Rather, it is an additional regulation that must be addressed and treated seriously. While it’s important to handle it correctly to mitigate any risks, you also want to do so without causing significant disruption to your business operations or spending excessive resources.

Harbor Compliance’s Beneficial Ownership Information (BOI) Reporting Service makes the reporting process as simple as possible. Our service saves your organization valuable time, potentially up to three hours per report, by managing the collection and verification of beneficial ownership information and ensuring timely filing.

Your information is securely stored in our specialized software, which was specifically designed with filing accuracy and reliability in mind. This approach prevents you from having to enter your information over and over again every time you need to make an update. It also perfectly positions us to handle updated and corrected report filings as information changes.