BCW Joins with Groups Urging Veto of Law Adding Cost to Small Businesses

The BCW is among 37 business organizations statewide that are urging Gov. Hochul to veto S.8432 (Hoylman-Sigal)/A.8662 (Gallagher), which would require small businesses organized as Limited Liability Companies (LLCs) to disclose confidential and personally identifiable information to the New York State Department of State (DOS).

The group notes that if signed into law, the legislation will undoubtedly place an additional regulatory and cost burden on small businesses, at a time when they are facing increasing economic uncertainty and excessive costs. It will lead to greater confusion, hefty fines, and business suspensions, and will make New York a less competitive place to do business.

The legislation would decouple New York’s LLC Transparency Act from the Corporate Transparency Act (CTA). The business groups noted that while the sponsors allege this bill is a technical fix, it is not; it is a massive new mandate for businesses on Main Street, and considerable new authority for the state to regulate LLCs. “The impact of the bill will be most acutely felt by small businesses, not larger enterprises or even small C-corps, who will be required to file additional paperwork and disclose certain personal information to DOS,” read the letter to the Governor.

The letter concludes:” New York State does not need another mandate, especially one that lacks credible justification. This legislation poses significant risks for small business owners, both in the lack of data security of their personal information, and in the likelihood of significant penalties for non-compliance. The Empire State is already a difficult place to do business and continues to lag the country in economic growth. Legislation such as this worsens the state’s business environment, especially for the very fabric of our economy and communities, small businesses.

To view the full letter and list of organizations urging the Governor’s veto, click here.