Tips & Advice

What Corporate Transparency Act Means for Small Businesses

The National Small Business Association (NSBA) on November 9, 2023, published a survey it conducted of small businesses regarding the Corporate Transparency Act. The most startling statement in the survey is “The average small-business owner is looking at compliance costs for CTA of nearly $8,000 in the first year alone.” Here are some of the interesting findings discussed in the survey: 47% of small business owners are unaware of the CTA. 48% said their business has only one beneficial owner. 52% said their business has two or more beneficial

What is a FinCEN Identifier & How Can I Use It?

Question: What is a FinCEN Identifier? Answer: A “FinCEN identifier” is a unique identifying number that FinCEN will issue to an individual or reporting company upon request after the individual or reporting company provides certain information to FinCEN. An individual or reporting company is not required to obtain a FinCEN identifier. An individual or reporting company may only receive one FinCEN identifier. Your company may include FinCEN identifiers in its BOI report instead of certain required information about beneficial owners or company applicants. FinCEN Identifiers for Individuals Individuals may

Is a Manager of an LLC a Beneficial Owner?

Question: Homer Simpson is a manager of World Wide Widgets, LLC, but he is not a member. Is Homer a beneficial owner of the LLC? Answer: Yes because as a manager he can make important decisions on the LLC’s behalf, thereby exercising substantial control over it. Source: Small Business Compliance Guide pages 26

Can a Trustee be a Beneficial Owner?

Question: Can a trustee of a trust that owns an interest in a company be a beneficial owner? Answer: Yes. A trustee of a trust or similar arrangement may exercise substantial control over a reporting company. The following individuals may hold ownership interests in a reporting company through a trust or similar arrangement: A trustee or other individual with the authority to dispose of trust assets. A beneficiary who is the sole permissible recipient of trust income and principal or who has the right to demand a distribution of or

Tips & Advice

What Corporate Transparency Act Means for Small Businesses

What is a FinCEN Identifier & How Can I Use It?

Is a Manager of an LLC a Beneficial Owner?

Can a Trustee be a Beneficial Owner?

Who is a Beneficial Owner?

Does a Subsidiary of a Report Exempt Entity Have to File a FinCEN Report?

Does an Entity that Assists a Tax-Exempt Entity Have to File a FinCEN Report?

Does a Tax-Exempt Entity Have to File a FinCEN Report?

Does an Inactive Entity Have to File a FinCEN Report?

Does a 20+ Employee Company Have to File a FinCEN Report?

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