Beginning January 1, 2024, a federal law known as the Corporate Transparency Act will require most LLCs and corporations to register their beneficial owners and those who control the operations of these businesses. This act impacts millions of LLCs, corporations, partnerships and other entities registered under state law. For most static, single owner entity this should not be much of a headache. However, family entities may require reporting when management changes, when an owner dies or even if an owner moves. The law is designed to unmask money laundering, tax evasion and other crimes but burdens the vast majority of honest business owners.
The law has hefty penalties for non-compliance.
Most private trusts will be exempt from the reporting requirements. Those currently on the fence on whether to use a LLC or a trust may want to review the CTA requirements.
Beneficial Ownership Information Reporting Rule Fact Sheet | FinCEN.gov
Don’t shoot the messenger. Just reporting what is about to happen.
This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.