FINANCIAL CRIMES ENFORCEMENT NETWORK

On Jan. 1, 2024, millions of U.S. businesses became subject to the Corporate Transparency Act (CTA), which requires domestic and foreign businesses to provide certain beneficial ownership information (BOI) within prescribed deadlines to the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN). There are 23 exemptions to the CTA’s reporting requirements, however, I suspect that if you are a member of a limited liability company and are still reading this blog, your domestic entity (your limited liability company) is required to make this relatively easy filing.

Like I said the filing is not particularly difficult.  If you are a member of a limited liability company you should visit www.fincen.gov to determine whether you are supposed to file a beneficial ownership information report, and, if so, how to do so.  Then, of course, you should do so. The Government wants one filing per entity, but the members are all required to disgorge some information (mainly resident addresses and driver’s license information).

My experience is that it took about one hour the first time I made the filing and something less than 15-minutes for each subsequent filing.  Obviously, for a small fee, we can do this for you – or you can go online to see if you need to do it yourself.

By way of background, the law was the result of a bi-partisan bill.  Among other things, it is reported the purposes of the fact gathering include the following:

  • Preventing money laundering, tax evasion, and other illicit financial activities by ensuring the true owners behind entities are known.
  • Promoting greater accountability in corporate governance.
  • Identifying where decisions are made and who should be held accountable.
  • Minimizing risk by understanding the risks associated with customers or third parties.
  • Avoiding reputational damage and legal liability by discovering critical beneficial ownership information.

While offering no opinion as to the necessity or advisability of the law, it is the law and it is best to “hunker down” and comply.  That is what I am advising my clients.

And as stated by that great philosopher Homer Simpson, “Don’t blame me, I voted for the other guy!”

Edward Wilhelm and Jack Wilhelm provide assistance with wills and trusts, oil and gas activities, and a host of other areas of the law.

THE WILHELM LAW FIRM, 5524 Bee Caves Road, Suite B5, Austin, Texas 78746; (512) 236 8400 (phone); (512) 236 8404 (fax); www.wilhelmlaw.net

DISCLAIMER: The information on this site is not intended to and does not offer legal advice, legal recommendations or legal representation on any matter. You need to consult an attorney in person for legal advice regarding your individual situation.