Beneficial Ownership Reporting Required for Foreign LLCs
The New York LLC Transparency Act now applies only to foreign LLCs registered or seeking to do business in New York. Domestic LLCs are no longer covered. The law aligns more closely with the federal Corporate Transparency Act.
Main requirements
Foreign LLCs must electronically report beneficial ownership information to the New York Department of State.
A beneficial owner is an individual who owns 25% or more of the company, or exercises substantial control (e.g., manager or executive). Required information includes full name, date of birth, address, and valid ID.
Filing deadlines
- Foreign LLCs registered before January 1, 2026: file by January 1, 2027
- Foreign LLCs registering after January 1, 2026: file within 30 days of New York qualification
Exempt entities
Certain entities are exempt, including: banks, insurance companies, SEC-registered firms, large operating companies, and certain nonprofits.
Penalties
Non-compliance may result in fines up to $500 per day, and potential suspension or dissolution of the LLC.
Action
Foreign LLCs doing business in New York should:
- Identify beneficial owners (≥25% ownership or control).
- Prepare the required personal information and ID documentation.
- File the report with the New York Department of State within the applicable deadline.