Important Deadline for Corporate Transparency Act Filing
As you may be aware, the Corporate Transparency Act created new reporting requirements with the Financial Crimes Enforcement Network (FinCEN) related to Beneficial Owners of LLCs, Corporations, or other similar entities formed under state law. These requirements have not been well communicated by the authorities, so we are reaching out to ensure you are aware of the changes.
Existing entities that were created or registered to do business in the United States before January 1, 2024 must file an initial report by January 1, 2025. Substantial financial penalties may be assessed for noncompliance. For newer entities formed during 2024 or later, an initial report needs to be filed within 30 days of entity formation. In addition, any changes to any information reported on a BOI report (change of address, change in owners, change in owner address, etc.) must also be reported within 30 days of the change.
New York State has also enacted similar reporting requirements, although those are not scheduled to start until 2026.
Please note that because these are legal filings in nature, we have been advised by our legal counsel that assisting with these filings could be construed as practicing law, which we are precluded from doing. Accordingly, Lumsden McCormick cannot complete, process, or submit these filings for clients. For many entities, the reporting is likely straightforward and can be completed with relative ease. For more complicated structures, however, we recommend engaging your attorney to assist in the filing.
Linked herein are the relevant materials FinCEN has issued that discuss the requirements, including what entities are required to report, how to complete the report, and reporting deadlines.
Additional information is available at https://www.fincen.gov/boi.
If you have any further questions, please contact the Lumsden McCormick Tax Team.
for more information
Cory has over 20 years of experience providing tax and consulting services to commercial businesses and individuals. His expertise lies in the myriad of business development incentives offered by various federal, state, and local agencies to targeted industries such as Manufacturing, Software Development, Technology Companies and many other in order to encourage regional investment, spur job creation, and foster economic growth. The available incentives include refundable tax credits, tax abatements, grants, and forgivable loans. He has extensive knowledge of Start-Up NY, Opportunity Zones, the Excelsior Jobs Program, Qualified Emerging Technology Companies, and various local incentives such as Industrial Development Agency (IDA) benefits. Additionally, he spends his time providing services to Start-Up Companies ranging from a founder with an idea to multi-national tech companies that have raised hundreds of millions of dollars. Cory has experience in all areas of U.S. federal and NY State taxation. He has been with Lumsden McCormick since 2001, was named partner on January 1, 2015. He is a member of the Firm’s Executive Committee and is head of the commercial services group.