New reporting requirement for LLCs and most corporations

Submitted by San Juan County EDC

Effective this year, the federal Corporate Transparency Act (CTA) mandates new federal reporting requirements aimed at combating money laundering, financing of terrorism, and other illicit activities. If your business is an LLC, C or S type corporation you are likely subject to this requirement. Sole proprietors and non-profits with 501(c)(3) status recognized by the IRS are exempt from the rule.

If you are subject to the rule you will need to report “beneficial ownership” of your business entity on the federal website. What you report is:The full legal name, date of birth, address, and a unique identifying number from an acceptable document (such as a passport or driver’s license) for each beneficial owner.

Details regarding the entity itself, including its business purpose and ownership structure.

This process typically takes less than 10 minutes and there are no fees paid.

If your business was formed before 2024 you have until December 31, 2024, to file. Businesses formed after January 1, 2024, need to file within 90 days of registration. The website has clear instructions on how to file, and a comprehensive FAQ if you have questions.