UPCOMING DEADLINE FOR BUSINESS OWNERS & HOA BOARD MEMBERS: The Corporate Transparency Act and What It Means for You
affected. Most HOAs are considered reporting entities under the CTA. Very few HOAs are exempt from these requirements. What are the filing requirements? The CTA mandates that covered entities report specific information about their beneficial owners. This includes: • Full legal name • Date of birth • Current residential or business street address • A unique identifying number from an acceptable identification document (like a driver’s license or passport) Deadlines are approaching. For existing entities formed before Jan. 1, 2024 , the deadline to file this information is Dec. 31, 2024. Entities formed on or after Jan. 1, 2024 , will have 30 days from the date of formation to submit their reports. Why is this important? Failing to comply with the CTA can result in significant penalties, including fines and potential criminal charges. Moreover, many people assume they’re exempt because they don’t run a business in the traditional sense. However, the law casts a wide net, and even those involved in small LLCs or serving on an HOA board could be affected. Lawsuits to strike down the law have failed, so take action now! Multiple cases in the federal court system have challenged the constitutionality of the Corporate Transparency Act. While I was admittedly hoping the CTA would be deemed unconstitutional (and completely rolled back), that has NOT happened as of now. Therefore, you need to take action right now to assess whether these
While our office’s primary focus has always been helping you navigate the complexities of estate planning, I wanted to take a moment to discuss something that might affect many of you — even if you don’t consider yourself a traditional business owner. You may have heard whispers about the Corporate Transparency Act (CTA), but I want to ensure you’re fully informed about what it entails and how it could impact you. The CTA is a new federal law that requires certain entities to report information about their “beneficial owners” to the Financial Crimes Enforcement Network (FinCEN). This initiative aims to combat money laundering, fraud, and other illicit activities by increasing transparency in corporate ownership. Who needs to pay attention? • Business Owners: If you own (or are a partial owner of) a corporation, limited liability company (LLC), or similar entity registered under state law, you’re likely required to comply. • HOA Board Members: Here’s where many people are caught off guard. If you’re a member of a Homeowners Association (HOA) board, you may be
new requirements apply to you. If you are affected, here is what to do:
• Visit the Filing Website: visit
FinCEN.gov/bio . There, you will find links to file your report, a page for FAQs, and a video demonstration for how to complete the filing. • Review Your Involvement: Are you listed as an owner, manager, or significant contributor to any corporation, LLC, or similar entity? • Check Your HOA Status: If you’re on the board of your HOA, find out how it’s organized legally. You may need to coordinate with other board members to ensure compliance. • Consult a Professional: Contact the attorney you use for your business or HOA. For our law firm clients, feel free to give us a call, and we can help you with the specifics. We’re here to help. My goal is always to keep you informed about matters that could impact your financial well-being and peace of mind. The Corporate Transparency Act is one such issue that, if overlooked, could have serious consequences. Please don’t hesitate to reach out if you have questions or need assistance with these new requirements.
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