CORPORATIONS LLCs and LPs: New Federal Beneficial Ownership Interest Report Required

CORPORATIONS LLCs and LPs:  New Federal Beneficial Ownership Interest Report Required

The recently enacted Corporate Transparency Act mandates filing a Beneficial Ownership Interest Report and marks a significant shift in how ownership interests must be reported to the federal government.  The law aims to enhance transparency and curb illicit activities, but it also imposes new challenges, especially for those unfamiliar with these requirements.

Under this new law, any entity formed in 2024 or earlier must file a Beneficial Ownership Interest Report with the Financial Crimes Enforcement Network (FinCEN) of the U.S. Department of the Treasury.  The report is mandatory for corporations, LLCs, LPs, and other entities unless they meet specific exemptions. Existing businesses must comply by January 1, 2025.  The report requires detailed personal information for each beneficial owner having 25 direct or indirect ownership, including:

  •      •Full legal name
  •      •Date of birth
  •      •Current residential address
  •      •A unique identifying number and a non-expired photo ID (e.g., U.S. passport, state driver’s license)

 

This must be submitted within 90 days of the entity’s formation or any changes to the ownership structure.

One of the primary concerns with this new requirement is the need to provide a photo ID, which could expose individuals to identity theft or other security risks.  Business owners are advised to handle this information carefully, potentially obtaining their FinCEN ID directly to maintain control over their personal data.  Failure to meet these obligations could result in severe penalties, making it crucial to stay informed and prepared. For more detailed guidance and assistance, contact the legal team at Epps & Coulson LLP.

Information contained in this Memo is intended for informational and educational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.  It is likely considered advertising.  Epps & Coulson, LLP encourages you to call to discuss these matters as they apply to you or your business.  Epps & Coulson, LLP’s dedicated professionals are available to help you navigate all your employment, business and real estate matters:  dawn@eppscoulson.com.

Epps & Coulson, LLP attorneys are admitted to practice in California, New York, Colorado, Texas and Oregon, staff licensed in France and affiliated Counsel offices in New York and Connecticut with lawyers also admitted in Connecticut, District of Columbia Massachusetts (pending), New Jersey, Hawaii, European Union, England and Whales, France (Paris Bar) and Sweden.

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