Ultimately, FileForms has been covering the Corporate Transparency Act (CTA) with a microscope. However, New York Governor Kathy Hochul has introduced the New York Transparency Act, a new bill requiring Limited Liability Companies (LLCs) owners to disclose their ownership stakes in their business statewide. New York is not the only state looking to implement this; California and Massachusetts are closely following along.
While the NY LLC Act is very similar to that of the CTA, one main difference is who gets access to the Beneficial Owner Information (BOI), as it will be available on a state-owned database for anyone to access and look at. The CTA allows BOI data to remain private, and only those working for the Financial Crimes Enforcement Network (FinCEN) will have access.
Businesses must now carefully consider where they want to form their LLC, S-Corp, and or C-Corp. New York has long been a safe haven for real estate due to the lack of transparency and documentation around property ownership, allowing people to hide behind multiple LLCs and remain private. The NY LLC Act and CTA will greatly impact foreign investors. While disclosing this information might seem redundant with the CTA, both acts aim to prevent money laundering and terrorist financing.
While the CTA is very much in place and ready to go live on January 1, 2024, Kathy Hochul will need to pass and sign the NY LLC Transparency Act. When that is complete, companies will have 365 days before the act is in place.
At FileForms, we believe the information needed in the BOI report will be highly similar to that of the NY LLC Transparency Act. We will happily gather and file your information directly with New York when the time is right for you. Get started today!