State Level UBO Registers – New Requirements in New York and Washington DC

The creation of state-level Ultimate Beneficial Ownership (UBO) registers in New York and Washington, DC, marks a significant shift in transparency requirements for businesses. These registers, along with pending legislation in California, South Dakota, Maryland, and Massachusetts, signal a growing trend toward heightened scrutiny on beneficial ownership to combat financial crimes and enhance corporate accountability.

State-Level UBO Registers: New York and Washington, DC

New York

New York’s UBO register requires businesses operating in the state to disclose their beneficial owners to state authorities. The objective is to identify individuals who directly or indirectly own or control 25% or more of a company.
Key Features:

  • Information required: Name, address, date of birth, and ownership percentage of beneficial owners.
  • Filing deadlines: Reports must be submitted annually and updated within 30 days of any ownership changes.
  • Penalties: Non-compliance can result in fines and legal repercussions for the business and its representatives.

Washington, DC

Washington, DC, has implemented similar requirements, with additional focus on entities registered for lobbying or political activities.
Key Features:

  • Applicable entities: Corporations, LLCs, and partnerships registered in DC.
  • Privacy safeguards: Beneficial ownership details are generally not available to the public but accessible to law enforcement.

Pending Legislation in Other States

California

California’s proposed UBO legislation emphasizes transparency for tech startups and multinational corporations often incorporated in the state. The proposed threshold for reporting ownership is 10%, stricter than the federal standard.

South Dakota

South Dakota, known for its robust trust laws, is considering UBO requirements to align with international anti-money laundering standards.

Maryland

Maryland’s legislation focuses on enhancing state cooperation with federal mandates, particularly the Corporate Transparency Act (CTA).

Massachusetts

Massachusetts aims to integrate UBO reporting into its annual corporate compliance filings to streamline the process for businesses.

How We Can Help File UBO Reports

Filing UBO reports can be complex due to varying requirements across jurisdictions. Our expertise ensures seamless compliance with state-specific UBO regulations. Here’s how we assist:

  • Information Gathering: We help identify and verify beneficial ownership details.
  • Preparation and Submission: Our team ensures all forms are accurately completed and filed on time with the appropriate authorities.
  • Ongoing Compliance: We track regulatory updates and notify clients of changes to filing requirements.
  • Secure Data Handling: Confidential information is managed with the highest security standards.

As state UBO registers expand across the U.S., proactive compliance will be critical for businesses. Partnering with us ensures your company meets these requirements efficiently and effectively, allowing you to focus on growth while we manage the details.

Contact us today to learn more about how we can streamline your UBO reporting and keep your business compliant!

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