If you or your trust owns an interest in a corporation, limited liability company, partnership, or other type of entity, subject to limited exceptions, you are likely required to provide certain information to the FinCEN (Financial Crimes Enforcement Network). A newly effective federal law, known as the “Corporate Transparency Act” or "CTA," requires many entities to report beneficial ownership and control information. The deadlines for filing depend on the date on which the entities are formed:
- Prior to 2024, no later than January 1, 2025;
- In the 2024 calendar, within 90 days of formation; and
- After December 31, 2024, within 30 days of formation.
For example, your entity may have been created to own a vacation home with another family member or because you have a small business. These entities ARE subject to analysis under the CTA and may be required to register, whether you individually OR your trust has an interest or ownership in the entity. Trust ownership of an entity includes any trust created by you or of which you are a beneficiary and/or a trustee.
Most of the exceptions to the reporting requirements under the CTA are for heavily regulated business entities and large operating companies. The “smaller” entities are those that are required to file. Find more information about exempt entities here.
There is a penalty of $591 per day up to $11,820 per incident and/or potential jail time if you DO NOT register your entity as required.
There are two ways that you can register directly, without assistance from Polsinelli:
1. You can register directly with FinCEN.
OR
2. You can use a third-party service provider that specializes in registering entities with FinCEN. Please let us know if you would like a list of third-party service providers.
If you would like more information about CTA, please visit our Corporate Transparency Act page.
