Creating a business entity is a common strategy in estate planning. However, because of the enactment of a new law called the Corporate Transparency Act (CTA), you may be required to submit certain information that was not previously required about a business entity and any individuals identified by the law as a beneficial owner to the federal government.
The CTA is a law that requires certain business entities to disclose certain information about the company and its owners to the US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN).
Additionally, the reporting company must provide certain information about its beneficial owners, which are defined as persons who hold significant equity (25 percent or more ownership interest) in the reporting company or who exercise substantial control over the reporting company.
Failure to comply with this new law could result in civil penalties of $500 per day up to a maximum of $10,000. Failure to comply can also result in criminal penalties of up to two years in prison.
Please click https://meredithpc.com/cta for more information on the CTA and your requirement to report under the CTA.
You can directly report your entities on the FinCEN website at https://boiefiling.fincen.gov/.