11/20/2024
In 2021 Congress passed the Corporate Transparency Act aimed at reducing money laundering. It is a small business reporting requirement with potential penalties including prison for committing a felony by not reporting. Let me repeat that failing to fill out this form is a potential felony with two years of prison time, plus a potential daily penalty over $500.
If your business is an LLC or corporation, including a single member LLC, you must fill out this form by the end of 2024, and if you start a new business in 2024, you must report within 90 days of formation. Reporting is done with a special electronic filing with the Treasury Department’s Financial Crimes Enforcement Network (Not the IRS)
Initial Reporting:
New companies formed after 1/1/2024 within 90 days of formation.
Existing companies formed before 1/1/2024 by 1/1/2025.
Updates: Within 30 days of change in beneficial ownership, name or address change
Annual reporting: None
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.
We are unable to complete this form for you. You must complete it online yourself at
https://www.fincen.gov/boi
To fill out the form you need the following information before you go to the website:
For the Company or Entity:
__ Full legal name according to the Secretary of State (download a “good standing” report),
__ Any trade and “doing business as” names,
__ A complete current street address of the principal place of business (A P.O. Box or the address of a 3rd party agent does not comply with this requirement)
__ The state, tribal or foreign jurisdiction of formation,
__ The IRS Taxpayer Identification Number .
A change of any of these 5 items at any time must also be reported within 30 days to the Financial Crimes Enforcement Network, including an address or owner change.
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:
Legal name and date of birth,
Unique identifying number and the issuing jurisdiction from one of the following documents: (i) a non-expired passport issued to the individual by the United States government, (ii) 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, (iii)or a non-expired driver’s license issued to the individual by a State, or (iv) 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
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 3rd party solicitors, because they could use this confidential information to steal your or your company’s identity or data.
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