New York State bill requires disclosure of beneficial owners of limited liability companies

State Issues New York State Legislation Beneficial Ownership

On March 1, a newly enacted bill from New York State, S8059, (the “Act”) was signed by the governor and amended New York State law governing limited liability companies by mandating New York LLCs to file beneficial ownership information with the New York Department of State. The Act set a deadline for new LLCs to file the required ownership information within 30 days of their establishment; for existing LLCs, the bill required them to comply with the new requirements by January 1, 2026. The Act demanded that exempt companies, defined as LLCs or foreign LLCs not otherwise defined as a reporting company that met a condition for exemption in 31 U.S.C. §5336(a)(11)(B), electronically declared their statuses and the basis for their exemptions shortly after formation. It further imposed an annual requirement on all limited liability companies to update or confirm their ownership or exempt status. Additionally, access to the beneficial ownership reports was restricted to law enforcement under certain conditions. The Act enforced compliance with the requirements by imposing up to $500 daily fines for late submissions, the possibility of companies being marked as delinquent, and the threat of dissolution for persistent non-compliance.