The LLC Transparency Act Signed Into Law

by Mindy Cohn

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, was signed into law last week. 

The new law is intended to improve efforts to curb wage theft and other corporate abuses.

The LLC Transparency Act was only signed into law after a compromise that resulted in the removal of a measure that would have allowed the public disclosure of the names of LLC owners. Those names will instead only be accessible by Federal, State, and local government law enforcement across New York State. Those who set up or already have LLCs that meet the requirements for disclosure will need to identify the names of the beneficial owner(s) in the filing.