All Entities Must Take Action!

This new federal law requires most entities to file a "beneficial owner report" with the Financial Crimes Enforcement Network (FinCEN). If you are an owner of or control an entity that is not one of the 23 types of entities exempt from this requirement, you are required to file the report. Existing entities must file this report during 2024. Entities newly formed in 2024 have 90 days from formation to file the report. From January 1, 2025, forward, new entities will have only 30 days to file the report. The penalties for non-compliance are substantial.

Here is the action you must take now if you are an owner of or control an entity:

  • Determine if your entity is on the exempt list or not.
  • If your company is NOT on the exempt list, make arrangements to file the report yourself or engage a professional who will work with you to get your report filed on time.

Scarinci Hollenbeck has written a letter to its clients about the CTA that you might find helpful. That letter is available here.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.