NY Business Owners: New LLC Disclosure Rules Start Next Week
Governor Hochul's recent vetoes changed the game for NY businesses - here's what you need to know before January 1st.
Just as you're wrapping up the holidays, Governor Hochul dropped some news that could affect your business. On December 19th, she vetoed two bills that would have changed how New York handles business law - but one major change is still happening on January 1st that every LLC owner needs to know about.
What Changed
The New York Limited Liability Company Transparency Act (NYLTA) is officially taking effect on January 1, 2026, despite the Governor's vetoes of related bills. This means LLCs in New York will need to file beneficial ownership information (BOI) reports or exemption attestations with the New York Department of State. The good news? Out-of-state businesses can still register to do business in New York without automatically being subject to general jurisdiction in New York courts - that's what one of the vetoed bills would have changed.
Who This Affects
If your business is structured as an LLC and operates in New York State, this affects you. It doesn't matter if you're a single-member LLC or have multiple partners. The requirements apply whether you're based in Manhattan or Watertown, and whether you formed your LLC years ago or just last month. Out-of-state LLCs registered to do business in New York are also covered.
What You Need to Do
- If your LLC was formed or registered in NY before January 1, 2026: You have until January 1, 2027 to file your BOI disclosure report or exemption attestation
- If you're forming or registering an LLC on or after January 1, 2026: You have just 30 days from formation/registration to file
- Determine if your LLC qualifies for any exemptions - some larger companies and certain regulated entities may be exempt
- Gather information about beneficial owners (anyone who owns 25% or more of the LLC or exercises substantial control)
The NY Angle
Here's what makes this particularly important for New York businesses: this state requirement runs parallel to federal beneficial ownership reporting rules, creating a dual compliance obligation. Even if federal Corporate Transparency Act requirements change, New York's rules will still apply. This is similar to how we handle other NY-specific requirements - just like New York's Paid Family Leave program operates alongside federal FMLA, you'll need to comply with both state and federal beneficial ownership rules. The state is also implementing new paid prenatal leave requirements that show New York continues to lead on employment law compliance.
Need help navigating this? Benton Oakfield's compliance team works with businesses like yours every day. We can review your current setup and make sure you're covered. Reach out - it's what we do.
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