What the New York LLC Transparency Act means for your business

In March 2024, New York became the first state in the U.S. to sign a Corporate Transparency Act (CTA) into law. Effective January 1, 2026, the act, which is modeled after the now-abandoned federal CTA of 2024, requires businesses to provide beneficial owner information in an aim to increase clarity around business ownership in the state.

The New York LLC Transparency Act (NY LLCTA) applies to both domestic and foreign Limited Liability Companies operating in New York. With filings for existing LLCs due before January 1, 2027, businesses must start preparing for this act now.

What is the NY LLCTA?

The NY LLCTA requires domestic and foreign LLCS in New York to file identifying information for each beneficial owner with the New York Department of State (NYDOS). A beneficial owner is considered to be anyone with at least 25% ownership or control of the business. Information about company applicants (the individuals who registered the company) is also required.

What information does the NY LLCTA require?

Affected LLCs will need to supply identifying information on their owners and company applicants, including the following:

• Legal name
• Date of birth
• Residential or business address
• A unique ID number (e.g., passport or driver’s license)

Although there will be some exempt entities that don’t need to comply with the NY LLCTA, they will still need to confirm their exemption status each year through an attestation of exemption filing.

Does the NY LLCTA apply to foreign LLCs too?

Yes, the NY LLCTA applies to LLCs formed and doing business in the state of New York, as well as foreign LLCs formed under the law of a foreign country and authorized to operate in New York.

Important dates for your diary

With the NY LLCTA coming into effect in early 2026, there are important dates that businesses in New York need to be aware of when filing beneficial ownership information:

• Pre-existing LLCs must file before January 1, 2027.
• New LLCs formed after January 1, 2026, need to file within 30 days of formation or qualification in the state.

Failure to comply with these deadlines could result in delinquency.

Get ready for the NY LLCTA with Corporate Creations

The NY LLCTA reflects the growing scrutiny surrounding businesses in New York and suggests that compliance requirements will continue to increase. To get ready for the upcoming NY LLCTA, businesses should assess whether or not they are exempt and find ways to effectively track beneficial ownership information so that they can comply with this new act.

Whether you’re a domestic LLC or foreign LLC in New York, Corporate Creations can assist you with your compliance obligations. Contact us today to speak to a member of our team about how we can help you stay on top of the NY LLCTA and any other new regulatory requirements that may come about.