Tax Professionals Question Muscle Behind NY Bid to Unmask LLCs

A bill awaiting Gov. Kathy Hochul’s signature would make New York the first state to create a public database of the owners behind limited liability companies.

But tax practitioners said its effectiveness could be hampered by a low penalty structure and the possibility of workarounds.

Proponents of the legislation, which passed in June, call it an important first step by a state to root out corruption and make it more difficult for unscrupulous actors to hide their financial dealings. But it’s unclear if the bill, A3484A, has the teeth to penetrate the closed world of LLCs.

Hochul (D) ...