A federal law called the Corporate Transparency Act effective January 1, 2022, requires almost ALL U.S. LLCs, for profit corporations, limited partnerships, limited liability partnerships and limited liability limited partnerships file a report with the Financial Crimes Enforcement Network (“FinCen”) of the U.S. Treasury or be fined $500/day until the report is filed. The report must identify all “beneficial owners” and their home or residence address, birth date, id number from the owner’s drivers license or passport and a picture of the owner’s drivers license or passport. A beneficial owner is a person or entity that owns 25% or more of an entity or that controls the company.
FinCen reports for entities formed after 2021 are due 14 days after the entity is formed. FinCEN reports for entities formed before 2022 are due not later than one year after the regulations take effect. The regulations have not yet taken taken effect. FinCEN has not yet created a system to file FinCEN reports so no company is subject to the $500/day fine at this time.
To learn more about the Corporate Transparency Act go to FinCEN Filer, LLC’s, website and sign up for its free newsletter. The newsletter has informative CTA articles and it will alert subscribers to CTA developments and when it becomes possible to file FinCEN reports. FinCEN Filer, LLC’s business is collecting information about beneficial owners, preparing a company’s FinCEN report and filing the FinCEN report with FinCEN. FinCEN Filer, LLC’s has an affiliate program that pays a commission to affiliates who refer customers who hire FinCEN Filer, LLC.