[Wills & Wins] Are you read for the Corporate Transparency Act?
Hey Reader,
As 2023 winds down, I wanted to touch on a crucial legal update that could significantly impact many of us: the Corporate Transparency Act (CTA).
Wills & More: The Corporate Transparency Act is coming!
The CTA requires companies to report beneficial ownership information to the Treasury Department’s Financial Crimes Enforcement Network (FinCEN). This affects not just big corporations but small private companies too.
This new federal law goes into effect on January 1, 2024. Entities formed before January 1, 2024 will have until December 31, 2024 to file their reports, but entities formed after January 1, 2024 must file the CTA report within 30 days of formation (extended to 90 days for 2024 filings only). And there are severe penalties for non-compliance, including escalating financial and jail time of up to 2 years.😬😬
The CTA includes reporting personal data such as home addresses and identification details of all beneficial owners, not just members or shareholders of the entities.
Key Actions Before 2023 Ends:
-
Dissolve Unnecessary Entities: If you have entities that are no longer serving a purpose, consider dissolving them before 2024 to avoid the CTA filing requirements.
- However, remember that in Louisiana dissolution of an LLC by affidavit means that the former members can be held personally liable for any debts or other claims against the dissolved LLC, so I recommend checking with a lawyer before doing this.
- Set Up New Entities Now: If you’re planning a new business or entity in 2024 consider forming the entity in 2023 to give you more time to submit the CTA filing.
- Don’t Forget About Estate Plans: If you have an LLC as part of your estate plan, you’ll need to file a CTA report.
Learn More:
- Beneficial Ownership Information Reporting | FinCEN.gov
- Act Before Year End: Corporate Transparency Act is Coming!
- Are you ready? The Corporate Transparency Act becomes effective Jan 1, 2024
Wins
The amazing friends and family who have reached out with support during an ongoing health crisis in my family. 🙏
Take Care,
Addie
P.S. As we navigate this new legal landscape, remember that our team is always here to help you understand how these changes might affect you. Through my collaboration with Spera Law Group, we can help you with all your CTA needs! Reply back to this email or click below to get help with your CTA compliance.👇
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Addie Prewitt Law
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