Governor Kathy Hochul has signed a revised version of the LLC Transparency Act, a move aimed at increasing transparency in limited liability company (LLC) ownership.
The new law mandates LLCs to disclose the names of their owners to the New York Department of State, which will maintain an internal database accessible to law enforcement agencies. This measure addresses the common practice of using LLCs to conceal the identities of individuals, which can facilitate activities such as wage theft, money laundering, and tenant mistreatment.
The original legislation, sponsored by Assemblymember Emily Gallagher and Sen. Brad Hoylman-Sigal, was inspired by a similar federal law set to enforce owner disclosures to the U.S. Department of the Treasury. However, Governor Hochul’s amended version excludes a provision that would have made LLC ownership data publicly available.
Defending the governor’s decision and other legislative vetoes, Communications Director Anthony Hogrebe emphasized the governor’s commitment to New Yorkers’ safety and economic recovery, noting that some vetoed bills posed risks to public safety or the state’s economic stability.
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