Corporate Transparency Act – Beneficial Ownership Information Reporting
This letter serves to alert you of the Corporate Transparency Act (CTA) requirement for Beneficial Ownership Information Reporting (BOI), which will impact most LLCs, corporations, limited partnerships, and other closely held entities. Congress enacted the CTA to create a national database of the beneficial owners of companies in the US. The law took effect January 1, 2024, and is part of an increasing effort to combat money-laundering, terrorism, fraud, tax evasion and other financial crimes. Exempted from this requirement are entities that are already subject to significant reporting requirements, including (but not limited to):
This law will affect most small family businesses, including LLCs and other entities designed solely to hold real estate and conduct no active business activities. Single-Member LLCs, though disregarded for Federal income tax purposes will be required to file reports with FinCEN unless they meet the “inactive entity” threshold. For additional information on the CTA and a full list of exemptions visit https://www.fincen.gov/boi.
If you have any ownership in a closely held entity, such as an LLC, corporation, or limited partnership, or if you have significant control over any such entity (including responsibility as an officer, director, manager, chief financial officer or investment trustee) then you may be subject to these requirements and responsible for filing reports with FinCEN.