New York Enacts LLC Transparency Act, Requiring LLCs to Disclose Beneficial Owners

The federal Corporate Transparency Act (CTA) is not the only legislation that became effective in 2024, requiring the disclosure of beneficial owners. On December 22, 2023, the New York LLC Transparency Act (NYLTA) was signed into law, aimed at pursuing unlawful activity, including wage theft and money laundering. Patterned after the CTA, the NYLTA uses the same definition of beneficial owners, contains the same 23 exemptions, and permits the disclosure to the New York Department of State of the initial report filed under the CTA. However, there are principal differences between the NYLTA and CTA. 

Update: While the NYLTA was initially slated to take effect during 2024, an amendment has delayed its effective date until January 1, 2026.