For Immediate Release: 12/23/2023
GOVERNOR KATHY HOCHUL
GOVERNOR HOCHUL SIGNS THE LLC TRANSPARENCY ACT
Legislation S.995B/A.3484 Creates an LLC Ownership Database for Government and Law Enforcement Use
Governor Secured Compromise to Crack Down on Unlawful Conduct While Protecting Privacy
Governor Hochul today signed the LLC Transparency Act, which will create a database of the beneficial owners of Limited Liability Corporations that is accessible to government agencies and law enforcement. The Governor secured a compromise agreement with the Legislature that will allow members of law enforcement and regulatory authorities to uncover misconduct, while addressing legitimate privacy concerns.
“For far too long, bad actors have been protected by the loose disclosure requirements of LLC ownership,” Governor Hochul said. “Wage theft, money laundering, tenant mistreatment and other unlawful activity has been masked by the opaque ownership structure of an LLC. The new LLC Transparency Act will give law enforcement and State regulators the tools they need to hold bad actors accountable.”
Legislation S.995B/A.3484 creates an LLC beneficial ownership database that can be accessed by Federal, State and local government law enforcement across New York State. This legislation gives these entities the tools to tackle criminal activity which, until now, has occurred behind a curtain of concealment. Individuals who set up, or already have ownership of LLCs and meet the requirements for disclosure, will be required to identify the names of the beneficial owner(s) in the filing.
State Senator Brad Hoylman-Sigal said, “I’m glad that Governor Hochul is signing our LLC Transparency Act to provide law enforcement and government agencies with the beneficial ownership information for limited liability corporations, which up to now had been virtually unattainable. In order to crack down on tax cheats, bad landlords, and employers engaged in wage theft in New York, this information is crucial for regulators and prosecutors. I’m thankful to Majority Leader Stewart-Cousins, Attorney General James, District Attorney Bragg, government watchdog groups, organized labor and my Assembly colleague Emily Gallagher for helping us get this bill across the finish line.”
Assemblymember Emily Gallagher said, “With today's signing, New York now leads the nation in tackling the rise of secret shell companies that abuse tenants and workers and defraud businesses and the government. I have seen up close the frustration and harm wrought by anonymous LLCs in my district. Today marks the first step to ending that impunity. I thank Governor Hochul, Senator Hoylman-Sigal and my Assembly colleagues for getting us over the finish line and vow to continue the fight for transparency.”
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