Bill > A08662

This bill amends the Limited Liability Company (LLC) law to redefine key terms related to beneficial ownership, providing more detailed and specific definitions for "beneficial owner", "reporting company", and "exempt company". The bill replaces previous references to federal statutes with a comprehensive New York-specific framework that establishes who qualifies as a beneficial owner (someone who either exercises substantial control over an entity or owns/controls at least 25% of ownership interests) and what constitutes a reporting company. The legislation creates an extensive list of exemptions for reporting companies, including various financial institutions, governmental entities, publicly traded companies, insurance companies, nonprofit organizations, and entities meeting specific operational criteria. The definition of "exempt company" is also expanded to include specific scenarios like minor children, employees, nominees, and individuals with inheritance rights. Notably, the bill authorizes the Department of State to further clarify these definitions through regulations, providing flexibility in interpreting and implementing the law. The overall aim appears to be increasing transparency around LLC ownership while creating reasonable exceptions for different types of entities.

Budget and Finance, Government Affairs

https://www.nysenate.gov/legislation/bills/2025/A8662