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Do you have an LLC, PA or own a Corporation? Here are the top 10 things you need to know about the New Federal Ruling! (2)

 

 


Do you have an LLC, PA or own a Corporation? Here are the top 10 things you need to know about the New Federal Ruling!

 

 

The Corporate Transparency Act (CTA) represents a significant shift in compliance requirements for businesses, including property managers and owners. To help you stay ahead, here are the top 10 things you need to know about this new law and how it impacts your operations. This include single member Realtors as well who have an LLC or PA.

1. What Is the Corporate Transparency Act?

The Corporate Transparency Act was enacted to combat illicit activities like money laundering and fraud. It requires certain companies to file detailed reports with the Financial Crimes Enforcement Network (FinCEN).

2. Who Needs to File Under the CTA?

Businesses, including property management companies and owners operating as limited liability companies (LLCs) or corporations, must file reports unless exempt. PA or other similar legal entities also fall under this ruling. If you are Realtor that formed  either an LLC or PA you most likely fall under this category. Exemptions include larger companies with over 20 employees, $5 million in annual revenue, and a physical presence in the U.S.

3. What Information Must Be Reported?

Reports must include:

  • Full legal name of the entity
  • Address of the principal place of business
  • Taxpayer Identification Number (TIN)
  • Names, dates of birth, addresses, and identification numbers (e.g., driver’s license or passport) of beneficial owners.

 

4. Who Qualifies as a Beneficial Owner?

A beneficial owner is any individual who:

  • Owns 25% or more of the reporting company, or
  • Exercises substantial control over the company.

5. When Are the Deadlines?

  • For New Entities: Entities formed on or after January 1, 2024, must file reports within 30 days of formation.
  • For Existing Entities: Those created before January 1, 2024, have until January 1, 2025, to submit reports.

6. Where Do You File Reports?

Reports must be submitted electronically via the FinCEN website. Visit FinCEN’s reporting portal for filing instructions.

7. Penalties for Non-Compliance

Failure to file accurate or timely reports can result in:

  • Fines of up to $500 per day until compliance is achieved.
  • Criminal penalties, including fines up to $10,000 and imprisonment for up to two years.

8. How Does This Impact Property Managers and Owners?

Property managers and owners must:

  • Ensure their business structures are compliant.
  • Maintain accurate records of ownership and control.
  • Update FinCEN with changes to ownership within 30 days.

9. Preparing for Compliance

Start by:

  • Reviewing your company’s ownership structure.
  • Gathering required information for beneficial owners.
  • Consulting with legal and financial advisors to streamline the reporting process.

10. Resources for Assistance

For detailed guidance, consult the following resources:

Conclusion

The Corporate Transparency Act introduces new responsibilities for property managers and owners, but proactive steps can ensure compliance. Understanding deadlines, required information, and reporting methods will safeguard your business against penalties. Begin preparing today to meet the upcoming deadlines with confidence.

For more information, visit FinCEN’s official website.

Star Bay Realty Corp,

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