We wanted to take a moment to inform you of a recent change in the law that may affect your business, specifically regarding new reporting requirements under the Corporate Transparency Act (CTA). These changes are part of a broader initiative to help combat financial crimes like money laundering and tax evasion.

The CTA now requires certain entities—such as corporations, limited liability companies (LLCs), most partnerships, certain trusts, and other similar organizations—to provide Beneficial Ownership Information (BOI) to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury. A beneficial owner is an individual who either directly or indirectly: (1) exercises substantial control over the reporting company, or (2) owns or controls at least 25% of the reporting company’s ownership interests. To determine whether you will be required to submit a BOI report, you can visit https://www.fincen.gov/boi-faqs#D_1.

Key Points to Note:
• For entities formed before January 1, 2024, there is a one-year period to submit your report.
• For entities formed after January 1, 2024, reporting must be done within 30 days of formation.
• If there are any changes in your business’s ownership information, updates are required within 30 days.

Failure to comply with these requirements could result in penalties, so it’s important to stay ahead of the deadlines. If you have formed an entity, whether through Hamilton Faatz, PC, another law firm, or independently, you are likely subject to these requirements. If you are required to report your company’s beneficial ownership information to FinCEN, you will do so electronically through a secure filing system available via FinCEN’s BOI E-Filing website (https://boiefiling.fincen.gov) and select “File BOIR.”

We understand that changes like this can feel overwhelming, but please rest assured that we are here to support you every step of the way. If you have any questions or need assistance with the reporting process, don’t hesitate to contact us. We’re happy to help you ensure compliance and keep your business in good standing.

Thank you for your attention to this matter. We’re always here to assist you.