In 2021, the Federal Government passed a law requiring a privately, for profit Company to report information about its owners to the Department of Treasury. The law is known as the Corporate Transparency Act, 31 U.S.C.A. §5336. The purpose of the law is to investigate people involved in illegal activity such as money laundering and finanancing for terrorism.
A Company formed before January 1, 2024, must file its report by January 1, 2025. Any Company formed after January, 2024, must file its report within 90 days of forming. The report must identify the beneficial owners of the Company. A beneficial owner is any individual who exercises substantial control of the Company or owns/controls more than 25% of the Company’s membership(LLC)/stock(Corporation). The individual must report following information: name, date of birth, address and taxpayer number or ssn. The report is filed with the Financial Crimes Enforcement Network of the Department of Treasury.
The Report is not subject to and cannot be accessed by the public through a Freedom of Information request. The Law provides that if the report is not timely filed, then the Company can face a penalty of $500 per day up to $10,000 fine and imprisonment up to 2 years.
For further information and how to file, please contact Corey B. Stern at [email protected].
