New York State Enacts Its Own Corporate Transparency Law
On December 23, 2023, New York State signed into law its own version of the federal Corporate Transparency Act (“CTA”) called the New York LLC Transparency Act (“NY LLCTA”). The NY LLCTA has some similarities with the CTA but also significant departures from the federal law. Similar to the federal law, there are civil penalties for not complying with the LLCTA. A reporting LLC which does not file the required BOI Report 30 days after it is due will be listed in the NY DOS records as “delinquent.” NY DOS may also impose a civil penalty of $250.00 for failing to file its BOI Report.
The NY LLCTA requires LLCs registered to do business or formed in New York State to report certain identifying information about its beneficial owners to the New York Department of State (“NY DOS”) in the form of a Beneficial Owner Information Report (“BOI Report”) unless the LLC qualifies for an exemption from the reporting requirement. This law is not expected to go into effect until December 21, 2024, at the earliest (although a possible extension is before the NYS legislature).
The NY LLCTA adopted the same exemptions from reporting obligations as the CTA. However, in a significant departure from federal law, “Company Applicants” (i.e., the person(s) who submitted entity formation paperwork with the State) need not submit personal information to the NY DOS. The LLCTA adopted the CTA’s definition of “beneficial owners,” which includes:
- Senior officers and other individuals who exercise substantial influence over important business decisions and
- Individuals who own or control at least 25% of the company’s ownership interests
If companies subject to reporting requirements don’t submit a BOI Report to NY DOS, a member or manager of the LLC must submit a signed statement with the NY DOS identifying upon which exemption the LLC is relying.
Presently, LLCs registered or formed prior to December 21, 2024, will have until January 1, 2025, to file the BOI Reports to NY DOS. LLCs registered or formed after December 21, 2024, are required to report BOI Reports to NY DOS at the time of formation.
News from Scopelitis is intended as a report to our clients and friends on developments affecting the transportation industry. The published material does not constitute an exhaustive legal study and should not be regarded or relied upon as individual legal advice or opinion.
New York State Enacts Its Own Corporate Transparency Law
On December 23, 2023, New York State signed into law its own version of the federal Corporate Transparency Act (“CTA”) called the New York LLC Transparency Act (“NY LLCTA”). The NY LLCTA has some similarities with the CTA but also significant departures from the federal law. Similar to the federal law, there are civil penalties for not complying with the LLCTA. A reporting LLC which does not file the required BOI Report 30 days after it is due will be listed in the NY DOS records as “delinquent.” NY DOS may also impose a civil penalty of $250.00 for failing to file its BOI Report.
The NY LLCTA requires LLCs registered to do business or formed in New York State to report certain identifying information about its beneficial owners to the New York Department of State (“NY DOS”) in the form of a Beneficial Owner Information Report (“BOI Report”) unless the LLC qualifies for an exemption from the reporting requirement. This law is not expected to go into effect until December 21, 2024, at the earliest (although a possible extension is before the NYS legislature).
The NY LLCTA adopted the same exemptions from reporting obligations as the CTA. However, in a significant departure from federal law, “Company Applicants” (i.e., the person(s) who submitted entity formation paperwork with the State) need not submit personal information to the NY DOS. The LLCTA adopted the CTA’s definition of “beneficial owners,” which includes:
- Senior officers and other individuals who exercise substantial influence over important business decisions and
- Individuals who own or control at least 25% of the company’s ownership interests
If companies subject to reporting requirements don’t submit a BOI Report to NY DOS, a member or manager of the LLC must submit a signed statement with the NY DOS identifying upon which exemption the LLC is relying.
Presently, LLCs registered or formed prior to December 21, 2024, will have until January 1, 2025, to file the BOI Reports to NY DOS. LLCs registered or formed after December 21, 2024, are required to report BOI Reports to NY DOS at the time of formation.
News from Scopelitis is intended as a report to our clients and friends on developments affecting the transportation industry. The published material does not constitute an exhaustive legal study and should not be regarded or relied upon as individual legal advice or opinion.