Corporate Transparency Act’s Year-End Filing Deadline Is Fast Approaching
The Corporate Transparency Act (“CTA”), which took effect January 1, 2024, created new reporting requirements. Unless an exemption applies, existing entities must electronically report information about themselves and their beneficial owners by January 1, 2025. Newly created entities are required to meet the reporting obligations within 90 days of formation.
Who Must Report
The CTA creates new reporting obligations for most business entities, including corporations, limited liabilities companies, and other entities formed by filing with a secretary of state or similar office (known as “reporting companies”). The CTA likely extends to most condominium and community associations and co-ops, and it may also apply to trustees and trusts that are beneficial owners.
What to Report
Each reporting company and its beneficial owners will need to provide (i) the individual’s legal name, (ii) the individual’s birthdate, (iii) the individual’s address (in most cases, a home address), and (iv) an identifying number from a driver’s license, passport, or other approved document, as well as an image of the relevant document.
How to Report
Under the CTA, the reporting company must certify that the FinCEN report is complete and accurate. Reporting is done online through a secure filing system known as BOSS (Beneficial Ownership Secure System), which can be accessed via FinCEN’s website at https://www.fincen.gov/.
How LP Can Help
Most clients can handle reporting themselves, and the process should not be burdensome or time-consuming for any single reporting company. However, clients with numerous legal entities may face administrative challenges. LP’s Corporate Transparency Act Team can answer your questions, provide analysis, assist with report preparation, and train your staff on these new reporting requirements. If you have any questions, please email our CTA Compliance Desk at CTAcompliance@lplegal.com.
Additional Information
What Trustees Need to Know About the Corporate Transparency Act – Sooner Rather Than Later
Filed under: Corporate, Tax Planning
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