What You Need To Know About the Corporate Transparency Act
Nov 6, 2024
There’s a new legislation requiring business owners to disclose the beneficial owners of all companies doing business in the US. While this information is already on your tax returns, there is a new requirement to file this information through a new online portal by 12/31/2024.
Who has to file?
Under the Corporate Transparency Act (CTA), nearly all LLCs – including single-member LLCs- formed within the United States or registered to conduct business in the U.S are required to submit Beneficial Ownership Information (BOI) reports to FinCEN unless they meet specific exemption criteria.
Exemptions
- An inactive single-member LLC
- A large operating company with more than 20 employees, at least $5 million in revenue, and a physical presence in the United States.
Instructions for Filing the FinCEN Report:
Here are simple step-by-step filing instructions for you to file for each entity you own:
- Gather Necessary Information (all located on your tax returns):
- Legal name of your business
- Taxpayer Identification Number (EIN)
- Physical and mailing addresses
- Details of beneficial owners, (name, address, date of birth, Social Security Number).
- Government-issued ID for the beneficial owner (passport or driver’s license)
- Access the FinCEN Portal:
- Visit FinCEN website at FinCEN Portal
- Create an account once
- Log in to your account to access the filing system for each entity you are filing for.
- Complete the Report
- Select the appropriate form for your business type [Partnership, S-Corp, C-Corp]
- Fill in the required fields on the submission
- Review and Submit: Please ensure your FinCEN report is filed by 12/31/2024. Late submissions can result in penalties.
Contact Zand & Fine for seamless communication and trusted expertise in both business and real estate law. Learn more here.
Note: While our office does not handle the above filings directly, we can connect you with a company that does.
