NEW YORK- Earlier this year, the state legislature passed the “LLC Transparency Act,” a measure that would require all LLCs in the state to disclose beneficiary owners. While federal disclosure requirements for LLCs already exist, the New York legislation would differ in a significant way in that the names of beneficial owners would be made available in a public database.
This past week, Attorney General Letita James and Comptroller Thomas DiNapoli formally endorsed the bill, which only requires the signature of Governor Kathy Hochul to become law.
Comptroller DiNapoli spoke to his support of the bill, noting that while many LLCs serve a legitimate business purposes, some individuals use the anonymity of the LLC legal structure to shield themselves from illicit activities. DiNapoli believes that increased transparency will lead to more corporate responsibility and accountability.
As independent business entities, LLCs are legally permitted to own property, serve as employers, and bid on and engage in public and private contracts for the sale of goods and services.
