Notice: Beneficial Reporting Requirments

United States Department of the Treasury

Financial Crimes Enforcement Network

2024 Corporate Transparency Act Addendum

A new reporting rule goes into effect on January 1, 2024 requiring the filing of a special form directly online with the Financial Crimes Enforcement Network.

The required form affects the following:

Single member LLC’s (even if filing Schedule), multi-member LLC’s, S Corporations and C Corporations that are not exempt must disclose beneficial ownership. .Disclosure is required:

§Within 90 days of formation of a new business in 2024, or

§By December 31, 2024 for companies that were in existence before 2024.

Beneficial owner information includes full legal name, date of birth, residential street address and passport or driver’s license image (picture).A beneficial owner is an individual owning 25% or more of the entity, as well as officers, board members and non-owner managers.

Ownership and address changes will have to be reported within 30 days of occurrence.

Penalties for non-compliance are $500 per day and up to 2 years in prison.

There are very few exceptions for small business and newly formed LLC’s, Corporations have the biggest exposure for non-filing .Make sure you tell us about any new entities you establish.

Please get this information together, add it to your calendar, and make sure the forms are completed.