Deadline Approaching for LLCs to File Corporate Transparency Act Report

In 2021, Congress passed the Corporate Transparency Act in an attempt to address financial fraud. The new statute requires a company to report certain personal information about its owner(s) to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN).

Companies (including single member LLCs) formed prior to January 1, 2024 have until January 1, 2025 to report their Beneficial Owner Information (unless an exemption is met). Noncompliant companies can face fines up to $500 per day.

The law is not without controversy - it was declared unconstitutional by a federal district court. However, appeals are in process and the litigation remains unresolved. Although the long-term future of the law is uncertain, FinCEN still expects owners to comply. with the legal requirements.

Our recommendation to clients is that they file the BOI report before year-end. There is no cost to make the filing, which is relatively short and should take less than fifteen minutes to complete.

Contact our office for questions about the Corporate Transparency Act or for assistance filing your BOI report..