Understanding the New York LLC Transparency Act (NY LLTA)

The New York LLC Transparency Act (LLCTA) is a new state law that requires limited liability companies (LLCs) that are formed in New York or authorized to do business in New York to report information about their beneficial owners to the New York Department of State.

 This requirement is separate from — and in addition to — the federal Corporate Transparency Act (CTA) rules. The New York law applies only to LLCs and is enforced by the State of New York, not the federal government.

 This law is designed to make LLC ownership more transparent and prevent fraud, money laundering, and other financial crimes.

Who Must Comply?

The law applies to:

  1. Domestic LLCs – LLCs formed under New York law.

  2. Foreign LLCs – LLCs formed outside New York but registered (authorized) to do business in New York.

💠Even if your LLC is based outside New York, if it has operations in the state, it must comply unless it qualifies for an exemption.

LLCs must file a Beneficial Ownership Information (BOI) report or, if exempt, an exemption attestation, with the New York Department of State (NY DOS).

Key Deadlines

  • New LLCs (formed or authorized on or after January 1, 2026): File the BOI report within 30 days of formation or authorization.

  • Existing LLCs (formed or authorized before January 1, 2026): File by January 1, 2027.

Once filed, LLCs must update their BOI information annually. Exempt LLCs must re-submit their exemption attestation every year.

What Information Must Be Reported?

For non-exempt LLCs, the BOI report must include:

  1. Beneficial Owners – Individuals who own 25% or more of the LLC or who otherwise exercise substantial control.

  2. Company Applicants – People who filed or directed the LLC’s formation/registration (this can include attorneys, agents, or service providers).

  3. Details Required for Each Person:

    • Full legal name

    • Date of birth

    • Current address (home or business)

    • Valid government-issued ID (passport, driver’s license, or similar)

For LLCs that qualify for an exemption (e.g., certain large companies, regulated entities, or nonprofits), an attestation of exemption must still be submitted, signed under penalty of perjury.

How NY LLTA Differs from Federal Law

Even after the 2025 updates to the federal CTA, New York’s law remains separate. This means:

  • Federal exemptions do not automatically apply to New York LLCs.

  • All LLCs operating in New York must comply with NY LLTA starting 2026, regardless of federal exemption status.

What LLC Owners and Startups Should Do Now

  1. Prepare early: Collect information about owners, applicants, and control structures (addresses, ID numbers, ownership percentages).

  2. Check for exemptions: Some large companies, regulated entities, and nonprofits may qualify — but an attestation is still required.

  3. Plan for annual updates: BOI reports and exemption attestations must be updated every year, even if nothing changes.

  4. Foreign LLCs take note: Compliance is mandatory if doing business in New York.

Why It Matters

The NY LLC Transparency Act represents a major shift in tracking LLC ownership. It aligns with global trends in financial transparency and anti-fraud efforts.

For founders, investors, and service providers, this is not just another form — it’s a real compliance responsibility.

At Borderless Counsel, we help LLC owners:

  • Determine whether filing is required

  • Prepare BOI reports

  • Assess exemption eligibility

  • Stay compliant with annual updates

Being proactive now will save time, avoid penalties, and ensure your LLC meets New York’s new transparency requirements.

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