ANNUAL FILING DEADLINE Currently the specifics for reporting is in the hands of the Treasury who must come up with regulations within the year. The plan will detail when you must report, the procedure, and when it takes effect. As of right now you have nothing to worry about but by the end of the year, reporting specifics should be released. STATESANDANONYMITYLLCS Many states such as Wyoming, New Mexico, and Del - aware do not collect any information on the owners or managers of LLCs. The ACT does not impact the states and whether it collects information on the managers or members of LLCs. The reporting requirement pertains solely to the entity and its owners. Thus, states should not be impacted by the ACT. EXAMPLES John and Mary hold respective 50 percent membership interests in four Florida LLCs. Under the Act, John and Mary must report their ownership interest to FINCEN for each LLC. Roger and Dwane jointly own a Delaware LLC (Naked Chicken, LLC). Naked Chicken LLC is the sole mem - ber and manager of seven other LLCs set up in various states. Roger and Dwane’s structures provide maximum anonymity from tenants or creditors discovering who is involved with any of the LLCs. Under the ACT, Roger and Dwane must disclose their personal information to FINCEN for each of the LLCs because they indirectly own, through the Delaware LLC, seven LLCs set up in various states. The ACT will not impact the real estate investor’s ability to set up an LLC and maintain private ownership. The ACT’s aim is to keep the federal government informed of who is operating behind these entities. The information collected by FINCEN will not be made public and accord - ing to the ACT’s purpose, will only be used by law enforce - ment to prevent illegal activity. It is interesting to note the ACT makes several exemptions for specific business - es that already report on their activities such as banks, publicly traded companies etc. What is ironic, or not, the drafters of the ACT believed it was vital to exclude Politi - cal Action Committees. I guess we don’t need the public knowing who is behind the massive amounts of money that pours into political campaigns. I mean, those compa - nies would never engage in fraudulent activity, right?!? •
As a founding partner at Anderson Business Advisors & Law Group, Clint Coons is a real estate asset protection expert and an avid real estate investor. He wants to help every investor create a well- balanced plan so they can continue to grow their portfolio and have
their capital and investments protected.
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