Updated: Oct 2
The Corporate Transparency Act (CTA) which will take effect in 2024 and will affect all of our clients. The act, signed into law January 1, 2022, outlines new reporting requirements for all LLCs and Corporations, as outlined by the Financial Crimes Enforcement Network (FinCEN) - a division of the US Department of the Treasury. All entities will be required to report “Beneficial Ownership Information” (BOI) - information about the individuals who ultimately own or control the company.
LLCTLC clients will be responsible for filing BOI reports on behalf of their Montana LLC or Montana Corporation. Hefty fines from FinCEN may result if non-compliant.
Here’s some information to get you started:
The reported information WILL NOT BE ON PUBLIC RECORD.
For entities filed before January 1, 2024, the report must be filed between January 1, 2024, and January 1, 2025. For entities filed on or after January 1, 2024, the report will need to be filed within 30 days.
All LLCs will be required to have an EIN. Some of our clients already have EINs in place for their LLCs - many do not.
If you had us apply for an EIN for your LLC, it can be found in your company docs in your client portal.
Following the initial report, if there are any changes of ownership/membership in your LLC or a change of address, a new report must be filed within 30 days. Otherwise, there is no ongoing filing requirement.
The report covers information about “Beneficial Owners”, “Company Applicants”, and “Company Info”
Beneficial Owners will be required to report their name, birthday, address, and provide a copy of an Identification (ie. driver’s license, passport).
Any individual who directly or indirectly exercises substantial control over the reporting company (“anyone who is able to make important decisions on behalf of the entity”)
An individual who owns/controls at least 25% of the ownership interest of reporting company
The individual who directly files the articles of organization or articles of incorporation
The individual who is “Controlling the Process” - who is “primarily responsible for directing or controlling the filing of the relevant document”
****Company Applicants ONLY need to be reported for entities filed on or after January 1, 2024.
If you have questions regarding the CTA, or wish to learn more about these new reporting requirements, please visit http://www.fincen.gov/boi. Additionally, the Montana Secretary of State’s office may be of assistance - (406) 444-2034.