NY LLCTA Only Applicable to LLCs Formed Outside of the U.S.
Much like the federal Corporate Transparency Act (CTA), following the New York LLC Transparency Act (NY LLCTA) has been a bit of a rollercoaster ride. The New York law contemplated that all limited liability companies (LLCs) doing business in the state would be required to disclose their beneficial ownership information. The requirement applied to both domestic LLCs as well as those formed in other states that were qualified to do business in New York. The filings consisted both of an initial report as well as an ongoing annual filing.
The New York Department of State’s office has now indicated that only LLCs formed under the laws of a foreign country and authorized to do business in New York will be subject to beneficial ownership information disclosure requirements under the NY LLCTA. Further communication with that office provided confirmation that the scope of the New York law has been drastically limited and that LLCs formed in New York or created in another U.S. state and authorized to do business in New York will not be required to disclose beneficial ownership information under the NY LLCTA.
This change in course mirrors the narrowing in scope of the federal Corporate Transparency Act to only entities formed outside of the United States. The New York Department of State has also stated that they will be updating their Frequently Asked Questions to include this information soon.