Important Update for New York Small Business Owners

If you own a small business structured as an LLC in New York, you need to know about a major change to the state's new transparency law.

Good news for most: if your LLC was formed in New York or anywhere else in the United States, you are completely exempt from the new beneficial ownership filing requirements. You don't need to do anything.

The New York LLC Transparency Act took effect January 1, 2026, but Governor Hochul's December veto means the law now applies only to LLCs formed outside the United States that are registered to do business in New York.

This is great news for the vast majority of small business owners in our community. What was supposed to be a massive compliance burden has been narrowed to just foreign entities.

However, if you operate a foreign LLC (one formed outside the U.S.) registered in New York, you have filing obligations. The state launched a filing portal on December 31, 2025, and you must file by December 31, 2026. The filing fee is $25.

Beneficial owners are individuals who own 25% or more of the company or exercise substantial control. You'll need to provide personal information including full legal names, birth dates, street addresses and government ID numbers.

Foreign LLCs that don't comply can be suspended from doing business in New York and face daily penalties up to $500. The law also requires annual filings and updates within 30 days whenever ownership changes.

If you're unsure whether your LLC qualifies as domestic or foreign, check your formation documents. If your LLC was created under the laws of any U.S. state or territory, it's domestic and you're exempt. If it was formed under another country's laws, it's foreign and you need to comply.

For local small businesses, the bottom line is simple: if you formed your LLC in New York or another state, this law doesn't affect you.