A new law was passed back in 2020 which has not been on the radar for most business owners.  Let's start with the fact that the U.S. Treasury predicts 32,000,000 businesses will now have to comply with these new laws starting in 2024!  Chances are, if you are reading this, you have new filing requirements which are subject to stiff penalties for failure to comply. 

Believe it or not, on a worldwide basis, the US is considered a business haven where many can hide their identities.  For various reasons, the US government wants to understand the "beneficial ownership" of certain businesses.   

Pretty much every small business other than some obscure ones that are excluded (see below) 😟 

If you have 12 Single Member LLCs that own your rental properties.  Guess what?!  You know have 12 FinCen reports to file.

There are many excluded, niche groups, but here are the ones that you could fall under:

• Large Businesses
  • 20+ FULL TIME W2 US based employees; AND
  • U.S. Office; AND
  • $5M or more in revenue
• SEC regulated investment companies + certain business already under strict regulations from the Federal Gov't

This is where it gets tricky and the real work will come in.  The regulations provide both insight and ambiguity.  

• 25% or more owner of the entity; OR
• One who exhibits significant control over the entity.  This MAY or MAY NOT include an equity owner!

Any existing business not excluded must begin to file in 2024 via the FinCen network filing process.  The "Initial Filing" is extremely important to get this right the 1st time as there are limited safe harbors for mistakes to avoid the penalties.  We must identify the definite beneficial owners and analyze the other possibilities.  For example, a CFO with certain signing authority but no equity ownership may need to be disclosed here.

For new entities formed after 1/1/2024, there are 30 days to report! Penalties begin on day 31 if you do not file.

• Changes to Beneficial Ownership = 30 days to report change to FinCen!
• Address changes
• Passport changes (Really?)
• Name changes via marriage
• Other ownership changes

• $500 per day penalty up to $10,000 and up to 2 years in prison for willful evasion
• No cap on the amount of entity penalties

Ensure you have an accurate listing of ALL LLCs, corporations and entities in which you have ANY ownership or control over so we can begin to map out your filing situations.  We are offering this as an add on to our current services.  Please use the link above to get on our list for the next steps!