Haven't seen this posted yet so I wanted just wanted to put something out here about beneficial ownership reporting requirements due to take effect on Jan 1. This came about under the auspices of the Corporate Transparency Act passed a few years ago. In a nutshell, anyone with an LLC, Corp or other legal entity registered with the State (Limited Partnerships) is going to fall under these requirements. As a CPA, I have been hesitant to take on this work because of several reasons; namely there is some question as to whether or not this falls under the practice of law and secondarily, my professional liability hasn't clarified if they are are going to be covering this kind of work (Failure to comply penalties are pretty steep). There is a glimmer of thought that congress may push this out a year; but so far, only the House has acted to do so.
I personally have four legal entities for which I am going to have submit reports under the rules as recently promulgated. If you have disregarded entities (for tax purposes) which haven't previously had an EIN looks like you may need one for this reporting.
https://www.morganlewis.com/pubs/2023/12/corporate-transparency-act-beneficial-ownership-reporting-requirements-for-small-medium-businesses-effective-jan-1
I would recommend anyone considering forming a new entity do so before Jan 1 to give yourself more time to meet these requirements.
I personally have four legal entities for which I am going to have submit reports under the rules as recently promulgated. If you have disregarded entities (for tax purposes) which haven't previously had an EIN looks like you may need one for this reporting.
https://www.morganlewis.com/pubs/2023/12/corporate-transparency-act-beneficial-ownership-reporting-requirements-for-small-medium-businesses-effective-jan-1
Quote:
Unless subject to an exemption, every new LLC, limited partnership, limited liability partnership, corporation, or other business entity will have a filing obligation with FinCEN. This will capture the vast majority of small and medium businesses in the United States, and it will be incumbent on persons to track their various business organizations and ensure that reports are filed with FinCEN in a timely manner.
In addition, as small and medium companies grow, and expand their business lines, they will need to be mindful to update FinCEN with any changes, including new owners over threshold, new investors, and any new business lines operating under a different trade or DBA name. Notably, in the Final Rule, FinCEN made clear that responsibility for the accuracy of the information rests with the Reporting Company, itself.
I would recommend anyone considering forming a new entity do so before Jan 1 to give yourself more time to meet these requirements.
