If you have an LLC you must comply or face fines and possible prison

You work hard. Now get ready to work harder to prepare to give more.

If you own or are a member of an LLC.
You have a deadline of January 1, 2025

The new Beneficial Ownership Reporting requirements for LLCs and other corporations come under the Corporate Transparency Act (CTA) and will go into effect on January 1, 2024.

The Corporate Transparency Act (CTA) of 2021 was enacted to combat financial crimes such as money laundering, tax evasion, and terrorist financing. It requires corporations, limited liability companies (LLCs), and similar entities to disclose their beneficial owners—the individuals who own or control these entities—to the Financial Crimes Enforcement Network (FinCEN).

Under the CTA, businesses must provide information such as names, addresses, and identification numbers of beneficial owners.

The goal is to prevent criminals and politicians from using anonymous entities to conceal their identities. Criminals that use entities using their real name still have to register.

Most small and privately held companies are subject to this law, although there are exemptions for heavily regulated entities.

The law became effective in 2021, with reporting requirements started in 2024.

Failure to comply can result in fines and even imprisonment.

Penalties: Failure to report can lead to penalties of $500 per day for non-compliance, and could even result in fines up to $10,000 or imprisonment for up to two years.

Other Articles