If your business is an LLC, you probably are!
If you receive a K-1 from a Partnership or S-Corp, you may be!
The Corporate transparency Act passed as part of the Defense Appropriation Act in 2021. Its purpose is the counter criminal activity such as money laundering, ponzi schemes, etc by having a list of the beneficial owners of every company doing business in the US. CTA’s effective date is Jan 1, 2024. SO the big question is – are you a “beneficial Owner”?
- Do you own 25% or more of the company?
- Is the company a corporation or an LLC registered with the Secretary of State?
If your answer is Yes, you probably are required to report your ownership to FinCen.
As an existing company, your due date for filing the report is December 31, 2024. All companies newly formed after January 1, 2024 must file the report within 90 days.
NOTE: This report is NOT part of your tax return and not something Tax Facts can do for you. To file a report, go to www.FinCen.gov/BOI