New York LLC Transparency Act

Summary

To combat money laundering and tax evasion (often seen in luxury real estate), New York requires LLCs to report the actual human beings who own or control them to the state government.

Rights & Rules

01.
If you form a Limited Liability Company (LLC) in New York, or register an out-of-state LLC to do business there, you MUST disclose the 'beneficial owners' to the Department of State.
02.
A beneficial owner is any individual who ultimately owns at least 25% of the company or exercises substantial control over it.
03.
The information required includes the owner's full legal name, date of birth, and business address.
04.
Unlike initial drafts of the bill, this database of owners is kept PRIVATE by the state and is only accessible to law enforcement and government agencies, not the general public.

Penalties

01.
Failure to file the required ownership information can result in the LLC being labeled 'delinquent,' suspension of the right to do business in NY, and civil fines.

Verified Citations

New York Limited Liability Company Law Section 211

Source

"Every limited liability company... shall file with the department of state a beneficial ownership disclosure... identifying each beneficial owner of the limited liability company by: (1) full legal name; (2) date of birth; (3) current business street address..."