It’s Time to File your FinCEN report!
Photo by Scott Graham, Unsplash Photographer
This year I’ve been educating the community on the Corporate Transparency Act. This federal legislation mandates a new FinCEN Beneficial Owner Information reporting requirement. This new requirement aims to enhance corporate transparency and prevent illicit financial activities. (Whether it will accomplish these goals is an entirely different article!)
My good friend and local attorney Rick Keyt has specifically set up a company, FinCEN Filer, LLC, to help clients with an easy and secure way to fulfill this requirement. Using this platform, you can input your information and this system will generate and file the necessary reports on your behalf. There are many legal nuances to this requirement so please use Rick’s service or have your business attorney assist you.
Who must comply?
Most small corporations and LLCs created or registered before January 1, 2024, must file by January 1, 2025. Companies created or registered after December 31, 2023, must file within 90 calendar days of formation.
This is not just a one-time reporting requirement. A company must file an updated report within 30 calendar days of a change to any required information. Don’t delay. The penalty for failure to file is a $500 daily fine and up to two years in prison!
Who is a beneficial owner?
An individual who can exercise substantial control over a company that must report. For example, an officer or important decision-maker of a small corporation; or a member or manager of an LLC. If a trust is a member of an LLC, the Trustee(s) and Trust Protector (in most cases if one is specifically named) must also comply with these reporting requirements.
It does not matter if you are actively using an LLC. If the LLC is listed as active on the Arizona Corporation Commission website, YOU MUST FILE! Type in your name as Principal on the ACC website to see if you are named on any Arizona company at: ecorp.azcc.gov/EntitySearch/Index.
Purchase your FinCEN report online at: https://fincenfiler.com/buyreport?oid=1&affid=9
Benefits of using FinCEN Filer:
- Works directly with each beneficial owner to ensure information accuracy
- Only takes 5-10 minutes to fill out your required information on their secure website
- Streamlined process and discount if you have more than one company
- Automatic monthly reminders to file an updated report if your information changes
I encourage you to file your report by October 31st of this year to ensure timely compliance.
Becky Cholewka specializes in estate planning. Call Cholewka Law at 480-497-3770 to schedule an appointment or find more information at www.gilbertlawoffice.com.