not list the names of LLC managers or owners on their website, nor do they collect such information. However, FinCEN will collect this material for their secure data - base. Will it stay confidential?
PENALTIES The government wants you to report, as is evidenced by the penalties. Civil penalties for failing to report are $500 per day. Willfully failing to report or providing false information can result in criminal fines up to $10,000 and/or two years in prison. Hacking or misusing the FinCEN database (an interestingly anticipated worry) includes criminal fines of up to $250,000 and five years in prison. The penalties for failing to report are significant. Of course, you can handle this filing on your own. But many of our clients prefer our assistance (such as with our service for annual state fillings and minute preparations to avoid a piercing of the veil). Many clients prefer our help so that they can do whatever they do best to manage their business and investments. In the coming weeks (as we learn the new regulations) we will provide our clients information on how Corporate Direct can assist to meet the CTA’s annual filing requirement. To stay up to date on this important new filing requirement feel free to subscribe to our newsletter at https://corporatedirect.com/sign-up-for-our-newsletter/. •
EXEMPTIONS Some entities will be exempt from the reporting require- ment, many of which already report pursuant to existing government regulations. The exempt entities include: • Publicly traded companies (subject to SEC regulations) • Companies employing more than 20 full-time employees in the United States, operating from a physical office in the United States, AND having filed a tax return demonstrating more than $5 million in gross receipts/sales. • Dormant companies which have been in existence for more than one year, are not engaged in “active business,” AND are not owned (either directly or indirectly) by a non-U.S. individual. • Additional exceptions apply to certain financial insti - tutions and charitable trusts.
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