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New Reporting Requirements for LLC and S-Corporation Owners



A federal law called the Corporate Transparency Act (CTA) went into effect this year. The CTA introduces new reporting requirements aimed at promoting transparency in business ownership and preventing illicit financial activities. It's essential for individuals who have created Trusts, LLCs, S-Corps, and other legal entities to understand how this law affects them and what steps they need to take to comply.



What is the Corporate Transparency Act?


The Corporate Transparency Act (CTA) requires certain companies, known as “reporting companies,” to disclose information about their beneficial owners and company applicants. This information includes names, addresses, dates of birth, and photo IDs of each beneficial owner or company applicant. The report must be filed with the Financial Crimes Enforcement Network (FinCEN).


Key Terms to Understand:

Reporting Company

  1. This refers to an entity which was created by filing a document with the Secretary of State or a similar government office, such as an LLC or S-Corporation.

Beneficial Owner

Company Applicant

 

Important Deadlines Based on the Entity's Official Date of Creation

Prior to January 1, 2024

December 31, 2024

During 2024

Within 90 days of formation

After December 31, 2024

Within 30 days of formation


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