Bill > S08432

This bill amends the definitions of "beneficial owner", "reporting company", and "exempt company" in the limited liability company law, significantly expanding and clarifying these terms. For "beneficial owner", the bill now defines it as someone who either exercises substantial control over an entity or owns/controls at least 25% of its ownership interests. The "reporting company" definition is extensively detailed, creating numerous exceptions for various types of entities such as publicly traded companies, financial institutions, government entities, insurance companies, non-profit organizations, and businesses meeting specific operational criteria. The "exempt company" definition is also broadened to include categories like minor children, employees with limited economic interest, individuals inheriting rights, and creditors under certain conditions. The bill additionally authorizes the department of state to further clarify these definitions through rules and regulations, providing flexibility in interpreting the law's scope. The primary aim appears to be creating a more comprehensive and nuanced framework for identifying and reporting ownership information for limited liability companies, likely to enhance transparency and support anti-money laundering efforts.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S8432