The Treasury Department Fincen Division is Coming for You!!!

Are you a member of a Homeowner Association? Are you a single-member LLC? Are you a small business owner with an LLC, partnership or corporation? Do you own real estate through an LLC? If so, the Corporate Transparency Act of 2024 (“CTA”) might significantly impact you. Non-compliance with the CTA can lead to significant penalties, including punitive civil fines of $500 per day and potential criminal liability. Therefore, it is crucial for business owners to understand their obligations and ensure timely and accurate reporting to FinCEN.

            As of January 1, 2024, the Corporate Transparency Act (CTA) came into effect in the United States, in effort to combat corporate financial crimes and enhance transparency. This law imposes new reporting requirements on certain entities formed or registered to do business in the U.S. prior to January 1, 2024 requiring disclosure of beneficial ownership information(“BOI”) to FinCEN.[i] The CTA mandates that “reporting companies,” which include corporations, limited liability companies (LLCs), and similar entities to disclose information about their beneficial owners to FinCEN. Beneficial owners are individuals who directly or indirectly control the entity (such as key officers, possibly directors) and individuals who own at least 25% of the entity.[ii]

The most looming part of the CTA are the filing deadlines. Different companies have differed deadlines based on their registration dates. The filing deadlines are as follows: (i) companies formed or registered before January 1, 2024 have until January 1, 2025 to file their beneficial ownership information, (ii) companies formed or registered in 2024 must file within 90 calendar days after receiving notice that their creation or registration is effective, and (iii) companies formed or registered on or after January 1, 2025 must file within 30 calendar days after receiving such notice.[iii] Any updates or corrections to beneficial ownership information must be submitted to FinCEN within 30 days of the change.[iv]

In the wake of the Corporate Transparency Act of 2024, businesses and entities affected by its reporting requirements are seeking efficient ways to comply with new regulations without compromising on operational efficiency. While the FinCEN website provides a centralized platform for submitting beneficial ownership information, many business owners have found it to be a cumbersome and time-consuming process. Alternative services are emerging to streamline and simplify this process for a modest cost.

Specialized BOI filing companies provide a range of services designed to simplify the compliance process for businesses. Key services include BOI report preparation and filing, compliance monitoring and updates, and consultation and guidance. These companies assist clients in gathering the necessary information and accurately preparing BOI reports. They ensure that the reports include all required details such as the full legal names, dates of birth, current residential addresses, and unique identifying numbers of beneficial owners. Because ongoing compliance is crucial under the CTA, specialized BOI filing companies offer monitoring services to track changes in beneficial ownership and ensure timely updates to FinCEN. They also remind clients of approaching filing deadlines and handle any required amendments or corrections. While not providing legal or accounting advice, these companies offer consultation services to help businesses understand their reporting obligations. They explain the CTA requirement and guide clients through the compliance process, helping to avoid common pitfalls.

One notable alternative to direct FinCEN reporting is https://fincensimplified.com/ This platform offers a user-friendly interface designed to guide entities through the reporting process step-by-step. From inputting essential company information to identifying and disclosing beneficial owners, Fincensimplified aims to simplify compliance efforts. Additionally, it provides resources and FAQs to help users navigate regulatory requirements with confidence.

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[i] 31 U.S.C. § 5336(a)(11)(A).

[ii] id.

[iii] 31 U.S.C. § 5336(b)(1)(A) – (E)

[iv] Id.

For more information, please contact us at Info@SpotlightFamilyOffice.com.