If, in 2024 (right around the corner), you start a small business or buy a rental property using a new limited liability company (LLC), you can trigger the need to file new federal reports and keep them up to date.
Take This Seriously
The penalties for non-compliance with the requirements to file the newly required reports can be severe.
First, there are civil penalties of up to $500 for each day that a violation continues.
Second, there are also potential criminal penalties—a fine of not more than $10,000 and imprisonment for up to two years for any person who willfully
provides, or attempts to provide, false or fraudulent beneficial ownership information, or
fails to report complete or updated beneficial ownership information to FinCEN.
If you get this wrong, you can avoid civil or criminal liability by submitting a corrected report within 90 days.
What Is This New Small Business Filing?
The Corporate Transparency Act (CTA) enacted in 2021 adds this entirely new 2024 online federal filing requirement when most small business corporations and LLCs file with their secretaries of state.
Under this requirement, you file the following two reports at the same time with the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN):
A “beneficial owner” information report (BOI report)
A company applicant information report
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