Understanding the Difference Between State and Federal LLC Reporting Rules
Understanding the Difference Between State and Federal LLC Reporting Rules
New York LLCs face two separate ownership reporting requirements: the New York LLC Transparency Act (NYLTA 2026) and the federal Corporate Transparency Act (CTA). Both laws require disclosure of beneficial owners, but each has distinct filing rules, deadlines, and enforcement authorities. Knowing the differences ensures your LLC meets all obligations, avoids penalties, and maintains authority to operate.
NYLTA: Filing Requirements for New York LLCs
The New York LLC Transparency Act applies to every domestic LLC formed in New York and foreign LLCs registered to conduct business in the state. Each LLC must file a Beneficial Ownership Information Report (BOIR) with the New York Department of State. Beneficial owners are defined as individuals owning 25% or more of the LLC or exercising substantial control, such as managers or executives.
Reports must include the owner’s full legal name, date of birth, current residential or business address, and a unique identifier such as a passport or driver’s license. Non-compliance carries penalties, including fines, suspension of good standing, or revocation of authority to operate in New York.
Importantly, even LLCs that believe they qualify for an exemption are still required to file. NYLTA does not grant automatic exemptions. Instead, eligible businesses must submit a formal Exemption Attestation confirming why they qualify under the law. This attestation is mandatory and must be filed in place of a BOIR; failure to submit it will result in the LLC being treated as non-compliant.
CTA: Federal Beneficial Ownership Reporting
The Corporate Transparency Act, enacted in 2021, requires certain corporations and LLCs nationwide to report beneficial ownership to the Financial Crimes Enforcement Network (FinCEN). Definitions of beneficial owners align with NYLTA, covering individuals with 25% ownership or substantial control, but the CTA applies to entities meeting federal criteria, not just New York LLCs.
Filing information is confidential, accessible to federal law enforcement and qualifying financial institutions. Penalties for failing to comply include civil fines and potential criminal liability. For LLCs operating in multiple states, adherence to both CTA and NYLTA ensures compliance at all required levels.
Key Differences Between NYLTA and CTA
Filing NYLTA Reports Efficiently
NYLTA allows New York LLC owners to complete online NYLTA filing in minutes. Users can enter LLC and beneficial owner information securely, select the appropriate filing type, and submit directly to the Department of State. Real-time validation reduces errors, and the platform provides reminders for annual updates or changes to ownership.
Submit Your NYLTA Filing Today
Avoid fines and maintain your LLC’s good standing by filing accurately and promptly. Call now to complete your filing with our NYLTA accountants and ensure your LLC meets all state reporting requirements efficiently.