Effective January 1, 2024, the Corporate Transparency Act goes into effect. All entities such as LLC’s and Corporations must file a report with the Financial Crimes and Enforcement Network (FinCEN for short). This is not an annual report and will only be required once.
WHAT IS REQUIRED?
Every entity such as an LLC or Corporation must report any part that either exercises substantial control over the company or owns at least 25% of the company. There are several exceptions for large companies, or entities that are tax exempt, but the average entity will need to file.
WHAT INFORMATION IS COLLECTED?
The filing requires each individuals:
Full Name
Birthday
Residential Address
Unique identifying number and picture from driver’s license or passport.
WILL THIS INFORMATION BE AVAILABLE TO THE PUBLIC OR SOLD?
No. FinCEN has stated there are five categorizes that may request access to this information.
Federal, State, local, and Tribal government agencies.
Foreign law enforcement agencies, judges, prosecutors, and other authorities.
Financial institutions, with consent, for customer due diligence requirements.
Federal functional regulators or regulatory agency to assess compliance by financial institutions with due diligence requirements.
US Treasury.
WHY IS THIS HAPPENING?
The United States government seeks to monitor foreign use of U.S. based corporate entities that may compromise the safety and security of the United States. This is one of several governmental actions seeking to control or limit investment in the U.S. from countries deemed to be a potential risk to national security.
WHEN MUST I REPORT?
Existing entities must file by January 1, 2025. Any new entities created after January 1, 2024 must file within 90 days of public registration.
HOW DO I FILE?
Filing may be done on www.fincen.gov. If you require help, our office is available to assist.