If you have an LLC, a business, or rental activity, you will may have a new reporting requirement with the federal government.
The Corporate Transparency Act of 2021 requires additional reporting on beneficial owners.
This act is designed to combat illicit and illegal activities.
Corporations, LLCs, and other entities subject to the CTA are called “reporting companies.” People who form new reporting companies must file a beneficial ownership information (BOI) report with the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) within 90 days of forming the company.
The owners of reporting companies created before 2024 must also file a BOI report, but they have until January 1, 2025 (but think December 31, 2024).
The owners of reporting companies created after 2024 must also file a BOI report within 90 days of formation.
Some businesses are exempt from filing—for example, large operating companies with over 20 employees and $5 million in income. There are other, more narrow exemptions as well.
To learn more and stay up to date with this filing requirement visit the website below:
This is a new requirement and is a changing situation.
Please consult with your lawyer to determine if you have a filing requirement.
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