Bradley attorney Bruce Ely was quoted in Bloomberg Tax on the topic of a New York bill that would force limited liability companies to share the identities of their “beneficial owners” and make this information available to the public. The bill would go into effect in January 2024.
The intent behind the bill is to expose and prevent crime by making it more difficult to conceal the parties responsible. However, Ely said, “I think it sends the wrong message to small businesses,” and he expressed concern that the bill may deter companies from locating in New York.
Ely called the New York bill a “me-too” measure, saying that the state should take advantage of the federal disclosure system rather than enacting its own. Others agree that, without similar federal laws, New York could be at a disadvantage when businesses are considering where to locate.
“Businesses can have valid reasons for not wanting to disclose their owners’ names,” explained Ely. Most experts do agree that the penalties for violating the New York Law are minor.
The full article, “N.Y. Ownership-Disclosure Bill Sparks Concern on Business Effect,” was published in Bloomberg Tax on June 23, 2023. (login required)