New York State signed into law the New York LLC Transparency Act (NY LLCTA) on March 1, 2024.
California introduced Senate Bill SB 594 (SB 594, Ca. Legis. Reg. Sess. 2023-2024 (2023)) with business entity transparency requirements similar to the CTA.
Maryland introduced Senate Bill 954, with a proposed effective date of October 1, 2024, which would require certain business entities to file, with the State Department of Assessments and Taxation, a report disclosing certain information regarding entities’ beneficial owners (and prohibiting the inspection of the reports in certain circumstances), together with any applicable federal beneficial ownership information report. Compliance for entities formed prior to the legislation’s effectiveness would have until October 1, 2025, to file their Maryland report.
The proposed California and Maryland laws may signal a growing trend toward state-driven transparency (independent of the CTA), so as to assist in bringing the U.S. more into line with many other countries’ business entity transparency requirements.