NEW REQUIREMENT FOR BUSINESS OWNERS FROM THE CTA

NEW REQUIREMENT FOR BUSINESS OWNERS FROM THE CTA

Submit Beneficial Ownership Information by January 1, 2025

Starting January 1, 2025, the Corporate Transparency Act (CTA) will require business owners, including many in real estate, to submit a Beneficial Ownership Information (BOI) Report to the Financial Crimes Enforcement Network (FinCEN). This new mandate aims to combat illegal business practices by increasing transparency in business ownership.

Who Is Affected?

If you own, co-own, or are associated with a business—especially within real estate—this rule likely impacts you. Real estate brokers, property managers, agents with interests in LLCs, investment groups, or any business entities involved in property transactions will need to report. The BOI report requires details on individuals with significant control or ownership stakes within a company.

What Needs to Be Reported?

The BOI report will detail all individuals considered "beneficial owners"—those with 25% or more ownership or significant control in the business. Ensuring compliance means identifying all beneficial owners and collecting the necessary documentation to meet the CTA’s requirements.

Why Compliance Matters

Failing to comply with the CTA’s reporting rules can lead to serious penalties. Missing the January 1, 2025, deadline may result in fines and other legal repercussions. It's critical for business owners to assess their structures, identify beneficial owners, and prepare for timely submission to avoid non-compliance risks.

Next Steps

To better understand your responsibilities and gather the required documentation, review the key points and FAQs here from FinCEN to learn more information about this new governmental requirement update.  Protect your business by ensuring your report is ready to submit before the January 1 deadline.

Learn more about United Country Real Estate at www.UnitedCountry.com or United Country Auction Services at www.UCAuctionServices.com.