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The Heritage Law Center, LLC Blog

New Beneficial Ownership Reporting Requirements for LLCs and Other Entities

POSTED ON: March 13, 2024

LLC

The Corporate Transparency Act (CTA) now requires limited liability companies (LLCs), corporations, and other business entities to file beneficial ownership information reports with the U.S. government. The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) regulations explain who must file a report, what information needs to be reported, and when reports must be filed.

Noncompliance can result in significant penalties. There are some exemptions. Frequently asked questions can be found at fincen.gov.

Key Points:

  • Entities created or registered:
    -before 2024 must file their initial reports by January 1, 2025.
    -in 2024 must file within 90 days of creation or registration.
    -on or after January 1, 2025, must file within 30 days of creation or registration.
  • This affects privately held LLCs, corporations, and other entities formed or registered to do business in any United States (or with any American Indian tribe) for any purpose, including for estate, investment, real estate, tax, privacy or other personal planning.
  • A trust’s beneficial owners (settlors, beneficiaries, trustees, etc.) may be reportable if the trust directly/indirectly owns an interest in an entity that qualifies as a reporting company. However, most trusts used for estate planning won’t be considered reporting companies according to these requirements.
  • The beneficial ownership information will:
    -be reported to FinCEN,
    -be accessible to authorized government entities, and
    -not be part of any publicly accessible database.

If you’re looking to set up an LLC in Massachusetts, we have the expertise to ensure you meet the needed requirements and we can help you prepare and file the necessary documentation. Contact us to see how we can help you properly form an LLC under Massachusetts law.