In an effort to combat money laundering, Congress passed the Corporate Transparency Act in early 2021, and the Department of Treasury issued regulations on September 29, 2022. Beginning in 2024, this Act and supporting Regulations require most businesses to report the beneficial owners of any entities formed with under state laws. This report will be filed with the Department of Treasury’s FinCEN. Under the current rules, YHB CPAs may not file these reports with the Department of Treasury, but we feel it is important that every business be aware of these new requirements.
Who Must File?
Under the regulations most business entities, such as limited partnerships, limited liability companies, corporations, and business trusts, will need to file with the Department of Treasury. There are no exceptions for small businesses, so it is expected that most businesses will be required to file these new reports beginning in 2024.
What is Reported?
You must report any beneficial owner who, directly or indirectly, either:
- Exercises substantial control over a company or
- Controls an ownership interest of at least 25% of the company.
When is the Filing Due?
- For any entity formed prior to 1/1/2024, the entity will have until 12/31/2024 to file the applicable reports to the Department of Treasury.
- For any entity formed after 1/1/2024, the entity will have 30 days to file with the Department of Treasury.
Do I Need to Do This Every Year?
No, this is a one-time filing. You will only need to update the information if the beneficial or entity ownership information changes. These updates are due within 30 days of the information changing. Contact us with any questions you may have.