1. The U.S. Department of the Treasury’s Financial Crimes Enforcement Network issued a new final rule on reporting requirements for beneficial ownership information under the Corporate Transparency Act on September 29, 2022.
2. The final rule requires certain entities, including U.S. corporations, LLCs, and non-U.S. entities registered to do business in the U.S., to report names and other information about their beneficial owners with FinCEN to prevent illicit activities.
3. There are exemptions for certain entities, including financial institutions, tax-exempt entities, large operating companies, and certain subsidiaries controlled by exempt entities.
4. Reporting companies created or registered after January 1, 2024, must file a report with FinCEN within 90 days of receiving actual notice of its creation or registration. – A reporting company must file a report with FinCEN by January 1, 2025.
– The report must include the legal name, date of birth, home address, and identification of the company applicant forming an entity on or after January 1, 2024.
– The report must also include the legal name, address, state of formation, EIN, and formation document of the reporting company.
– Beneficial owner information must be included, which consists of the legal name, date of birth, home address, and identification of individuals holding 25% or more of the business or those with substantial control over the business.
– The reporting company has ongoing reporting obligations, such as reporting changes to addresses and updated driver’s license information within 30 days to FinCEN. 1. Changes of beneficial ownership must be reported to FinCEN within 30 days.
2. If an owner dies, there must be a change of ownership reported to FinCEN within 30 days.
3. FinCEN estimates approximately 32.6 million reporting companies in the first year, including small businesses, and urges business owners to familiarize themselves with reporting requirements to avoid violations and penalties.
4. Violations of the Corporate Transparency Act (CTA) can lead to civil and criminal penalties, including a $500 per day penalty with no maximum cap on penalties.
5. Blalock Walters offers assistance with new compliance requirements through their Corporate Department at 941-748.0100 or on their website.
6. Attorney Anne Chapman at Blalock Walters has earned Board Certification in Labor and Employment Law, bringing the total number of Florida Bar Board Certified Attorneys at the firm to seven.
7. Funds distributed from a traditional, non-Roth, Individual Retirement Account (IRA) and inherited IRAs are subject to income tax, making using an IRA to fulfill charitable goals a good strategy. – Changes have been made to Florida Far-Bar residential contracts for condominium and cooperative units.
– Employment law has seen recent developments, including non-compete agreements.
– Property inheritance can lead to disputes among heirs, especially over valuable assets like a family home.
– A new federal rule requires disclosing business owners’ beneficial ownership information.
– Real estate law changes have affected condominium and cooperative units in Florida. 1. Taylor Falkner has been elected to the Manatee County Bar Association Board of Directors for the Young Lawyers Division.
2. Laura Smidt has been hired as a real estate attorney at Blalock Walters, P.A.
3. Blalock Walters sponsored the Tidewell Foundation Signature Luncheon, which honored U.S. military veterans and featured keynote speaker Dr. Sudip Bose.
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