New York has enacted new beneficial ownership reporting requirements that will apply to all limited liability companies formed or authorized to do business in the state. Beginning January 1, 2026, these entities will be required to provide certain beneficial ownership information, as is further set forth below.
What Is Changing?
Effective January 1, 2026, the New York LLC Transparency Act will require all domestic and foreign limited liability companies formed or authorized to do business in New York to report beneficial ownership information or certify that an exemption applies. The Act defines a “beneficial owner” as an individual who (i) owns at least 25% of an LLC, or (ii) exercises substantial control over the entity. For each beneficial owner, the following information must be reported:
- Full legal name
- Date of birth
- Current business or residential address
- Identification number (e.g., driver’s license or passport)
Reported information must be confirmed or updated annually. LLCs qualifying for an exemption from disclosure will be required to file an attestation of exemption.
Who Will be Impacted?
The above disclosure requirements apply to all New York domestic and foreign LLCs. Qualification for an exemption from disclosure will depend on the structure and activities of the LLC and must be assessed on a case-by-case basis.
How Can Businesses Prepare?
LLCs formed before January 1, 2026, must report the required beneficial ownership information on or before December 31, 2026. LLCs formed on or after January 1, 2026, must report such information within 30 days of formation or qualification. Non-compliance may result in late fees up to $500 per day and certain other penalties. To prepare, LLCs should begin assessing ownership structure(s) and gathering required disclosure information well in advance of these deadlines.
What Are the Next Steps?
If you have questions about the new reporting requirements under the New York LLC Transparency Act, or if you would like assistance preparing or submitting future filings, contact the attorneys at Dvorak Law Group for assistance.
About Dvorak Law Group, LLC
Dvorak Law Group, LLC is a full-service business, estate and wealth transfer planning, and litigation law firm with offices in Omaha, Hastings, Sutton, and Columbus, Nebraska, and Sioux Falls, South Dakota. It serves individuals, businesses, non-profit organizations, and government entities in Nebraska, South Dakota, and throughout the country. To learn more about Dvorak Law Group, please visit www.dvoraklawgroup.com.
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