Governor Hochul Signs LLC Reporting Bill Into Law
On December 22, 2023, Governor Hochul signed into law Chapter 772 of the Laws of 2023. This law requires limited liability companies (LLCs) to report to the New York State Department of State who their beneficial owners are. The bill is very similar to the federal Corporate Transparency Act, except that the New York law applies only to limited liability companies (which includes professional limited liability companies – PLLCs). Governor Hochul signed Chapter 772 of the Laws of 2023 only on the condition that a chapter amendment be enacted in 2024 to fix certain technical problems with the new law. On March 1, 2024, Governor Hochul signed into law, as Chapter 102 of the Laws of 2024, the chapter amendment. Under the New York law, the New York State Department of State will begin accepting LLC reports on January 1, 2026. If your LLC was created or registered prior to January 1, 2026, you will have until January 1, 2027, to report to the Department of State. If your LLC is created or registered on January 1, 2026, or thereafter, you must report to the Department of State within 30 calendar days after your LLC initial filing. In New York, you must annually update or confirm your LLC report even if there are no changes. Also, unlike the federal Corporate Transparency Act, the New York law requires any LLC to electronically file with the Department of State when claiming an exemption to the New York LLC reporting law and to confirm that exemption annually. The exemptions are identical to those in the federal Corporate Transparency Act, the main one being if you are a large LLC with more than twenty employees and more than $5 million in gross receipts or sales in a calendar year.
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