New York LLC Transparency Act Faces Ongoing Scrutiny, Expert Analysis
The New York LLC Transparency Act, enacted in 2023 amid concerns about access to beneficial ownership information, continues to evolve, prompting ongoing analysis from legal experts. The law was initially passed due to fears that the federal Corporate Transparency Act (CTA) might not provide sufficient access for state law enforcement. Since then, it has undergone amendments, and further changes are currently being considered, creating a degree of uncertainty for business owners and legal professionals in New York.
Jonathan B. Wilson, a partner at Buchalter and the author of the Lexis-published article “The New York LLC Transparency Act,” has been providing ongoing analysis and updates on the Act’s requirements and implications since 2024. He is also the author of a 2025 Buchalter Client Alert addressing the law. According to Wilson, the status of the New York law is currently “murky” due to the pending amendment and a lack of regulatory attention from New York authorities.
The federal CTA, adopted by Congress in late 2020, requires more than 30 million corporations, LLCs, and other legal entities to file a Beneficial Ownership Information (BOI) report with the Financial Crimes Enforcement Network (FinCEN). These reports must identify the “beneficial owners” of the reporting company, as well as a “company applicant” – the individual who filed the documentation to form the company.
Each BOI report requires specific identifying information for each beneficial owner, including their full legal name, residential address, birth date, a unique identifying number (such as a driver’s license or passport), and an image of the document providing that identification. The initial concern driving the New York legislation was that the federal CTA might not grant state law enforcement the level of access needed to effectively investigate financial crimes.
The New York law has been amended once with the Governor’s endorsement, and a second amendment is currently pending. This ongoing evolution, coupled with the lack of regulatory guidance, is creating challenges for businesses operating within the state. Wilson advises business owners and attorneys with LLC clients in New York to closely monitor the law’s implementation.
Jonathan B. Wilson is also a Co-Founder and CEO of FinCEN Report Company, LLC, and has over 34 years of experience in corporate, M&A, and securities matters. He previously served as general counsel or chief legal officer of Web.com and EasyLink.
The pace of legal change continues to accelerate, with attorneys navigating increased regulatory scrutiny and rapidly evolving artificial intelligence, according to LexisNexis.
