FinCEN, which is the arm of the Federal government that monitors potential money laundering and other illegal financial transactions, has a new requirement for anyone who is the beneficial owner of an LLC. The Corporate Transparency Act requires that anyone who is an owner or a partial owner of a limited liability corporation, created under state law, needs to file certain information with the Federal government. While the filing process, particularly if you are the single owner of one LLC, is fairly straightforward, it is very important that it is actually done. The penalties for failure to file are aggressive.
For an entity created in 2024, you have 90 days from formation of the LLC to file. For a previously created LLC, you must file by the end of 2024. Going forward (entity formed in 2025 or later) the filing must occur within 30 days of the formation. Anyone who owns more than 25% of the entity or has a power to control the entity is required to file. The information required is personal, not financial, (residential address, date of birth, name, etc.).
Earlier in 2024, there was a court case that found this regulation to be unconstitutional, but it ONLY APPLIES TO THE DEFENDANTS IN THAT CASE. Do not presume that you do not need to file as a result of this ruling. Below is a link to the FinCEN website with more information on how to file. If you have questions, please reach out to your attorney or accountant for guidance.