News and Updates

In January of this year we sent an email to all of our clients about the new reporting requirement created by the Corporate Transparency Act (CTA).  Well, the rubber has hit the road.  If you or a loved one owns a business or is a member of an LLC, the time is now to make sure you’ve filed these ownership disclosures with Uncle Sam.  Let me emphasize that failing to fill out this form is a potential felony with two years of prison time, plus a potential daily penalty over $500.

Reporting is done with a special electronic filing with the Treasury Department’s Financial Crimes Enforcement Network (Not the IRS).  The reporting requirement are as follows:

The required information includes owners and, for new businesses formed in 2024, the company applicants. To clarify, even if you have set up an LLC just to own a rental property this form is required, and a separate filing and form is required for every single entity, whether an LLC, an S corporation, or a C Corporation. Some exemptions exist, primarily for larger companies and not-for-profit entities. We are particularly concerned about folks that have set up their own LLC online, for whom the potential filing penalty is also over $500 for each day late plus potential prison time.

Due to Liability restrictions, we are unable to complete this form for you. You must complete it online yourself at  https://www.fincen.gov/boi

Thankfully, most people will have no problem filing on their own.  To fill out the form you need the following information before you go to the website:

For the Company or Entity:

1. __ Full legal name according to the Secretary of State (download a “good standing” report),
2. __ Any trade and “doing business as” names,
3. __ A complete current street address of the principal place of business (A P.O. Box or the address of a 3^rd party agent does not comply with this requirement)
4. __ The state, tribal or foreign jurisdiction of formation,
5. __ The IRS Taxpayer Identification Number .

For the Owners and Applicants:
For each owner of at least 25% of the entity (directly or indirectly), the reporting must include for each owner:

1. Legal name and date of birth,
2. Address,
3. Unique identifying number and the issuing jurisdiction from one of the following documents:
   1. a non-expired passport issued to the individual by the United States government,
   2. or a non-expired identification document issued to the individual by a State, local government, or Indian tribe for the purpose of identifying the individual,
   3. or a non-expired driver’s license issued to the individual by a State, or
   4. a non-expired passport issued by a foreign government to the individual, if the individual does not possess any of the other documents described, and
4. An image of the document from which the unique identifying number (above #4) was obtained. Additionally, the rule requires that reporting companies created after January 1, 2024, provide the four pieces of information and document image for company applicants.

At the present time there are NO extensions available and there are only 30 days left to file the form.

Because of the incredible amount of confidential information that must be provided, we strongly emphasize that you do NOT use unknown 3^rd party solicitors, because they could use this confidential information to steal your or your company’s identity or data.

Lastly, and this is where we things will become a pain in the tush, if any of the above items change you have to update the filing within 30 days.  So if any owner or member moves or renews their drivers license, get’s married and changes their name etc., you have 30 days to update the filing.  If this sounds like too much, I recommend you contact your congressman or senator and complain, that’s the only way these onerous rules will change.