Before Its Approval, Hochul Disarms Law to Unmask LLCs
BY MARK HALLUM DECEMBER 26, 2023 12:37 PM
New York Gov. Kathy Hochul signed a law to provide more transparency to limited liability companies in New York, but some critics say the law’s final iteration fritters away the opportunity for real accountability.
The lawmakers who originally pitched the LLC Transparency Act seem to be accepting the concessions made by the executive chamber. At least for now.
Now dubbed the LLC Disclosure Act, the bill requires beneficial owners of properties in New York state to provide their real names for a New York Department of State (DOS) database accessible only to law enforcement. However, Hochul’s office cut out the requirement to make the list available to the public at large.
Celebrities and victims of domestic violence would likely be vulnerable to stalkers and others with personal grievances if the database was made publicly available, real estate attorney Adam Leitman Bailey told Commercial Observer in July.
“[The legislation] does not apply to S corporations, which gives another outlet to persons starting a business and wanting to bypass the LLC Transparency Act,” Bailey told CO in an email Wednesday.