At Iddins Law Group, we pride ourselves on being trusted legal advisors to our clients. As part of that role, we strive to keep our network informed of any updates or changes to the law which may impact them or their clients. Please review the important legal information below.
Corporate Transparency Act. As of the beginning of this year, a new law, the Corporate Transparency Act (CTA), is in effect. This law places a requirement on the members of LLCs to file a special electronic report with the Financial Crimes Enforcement Network (FinCEN). These reports are different from those you would normally file with the IRS or the Secretary of State.
Potential Penalties. It is VERY important to file this report. Most LLCs fall under this law, INCLUDING SINGLE MEMBER LLCS FOR RENTAL PROPERTIES. Penalties for not filing the report include 2 years imprisonment and a $500 per day penalty.
Timing. The deadline for filing the CTA report with FinCEN depends on when the LLC formed. For businesses created prior to 2024, the deadline is December 31, 2024. For those businesses formed after January 1, 2024, the LLC has 30 DAYS from formation to file the report.
Additional Reports. In general, once the initial CTA report is filed, you will not need to file the report annually. However, you will be required to file a new CTA whenever you change (1) beneficial ownership, (2) business name, or (3) business address. If you make any of these changes you MUST file a new report or risk the same penalties.
Resources. If you have any questions about the CTA, please (1) call our office at 253-854-1244 or email at info@iddinslaw.com; (2) Contact a trusted accountant; and/or (3) Review the following article: https://www.natlawreview.com/article/new-corporate-transparency-act-disclosure-requirements-set-2024
Thank you for your trust and your referrals. As always, our door is open to new and existing clients for any of their needs in Estate Planning and Probate. We are also more than happy to assist with your Personal Injury and Wrongful Death matters at Iddins Injury Law.
