A new federal law requires all small businesses to register in a new federal portal to identify those with controlling interests in the company. Beneficial owners with at least 25% equity in a company must be identified in a report to the Financial Crimes Enforcement Network (FinCEN), so law enforcement knows who to contact if there’s suspicious activity.
SMALL LIMITED LIABILITY CORPORATIONS (LLC) CAN NO LONGER FILE ANONYMOUSLY UNDER THE NEW Corporate Transparency Act, A LAW DESIGNED TO COMBAT MONEY LAUNDERING.
New businesses must register within 90 days of opening, and established businesses must register in 2024. Companies with at least 20 full-time employees, accounting firms and tax-exempt entities are among those organizations exempt from reporting.
Failure to report can result in a fine of $500 per day. Contact your attorney with any questions.
