Shah Law Firm, PLLC

The article below sheds some light - or more accurately - confirms continued cloudiness over the status of NYS's LLC Transparency Act. Since the passing of the Interim Final Rule to carve out massive exemptions for all "domestic entities" on the federal law, there is confusion on what entities remain mandated to comply with NYS. 

Moreover, there is very little guidance on instructions on how to comply. There doesn't seem to be a rush among attorneys to comply. Instead, it seems to be a waiting game to see if NYS will also change its laws to be similar with the scope of federal.

The Ironic Impact of FinCEN’s New CTA Regulations on New York’s LLC Transparency Act https://share.google/oadLxmPyD2ocIdp42

DISCLAIMER: The information provided on this page is intended to guide people to become compliant on a new issue and avoid penalties. This compliance measure is not related to any tax preparation service that I provided, nor is it intended to suggest continued legal service that I provided in the past. Just trying to help people out to get compliant! Hopefully, this content helps - I provide some links to the government websites that probably confuse many, but is supposed to answer questions. 

*** My office will NOT do the filing for you. Good luck! ***

New FinCEN compliance rules. The Reporting Rule requires certain entities to file beneficial ownership information (BOI) reports (referenced in this Guide as BOI reports or reports) to FinCEN. Reports contain information about the entity itself and two categories of individuals: 

1. Beneficial owners
2. Company applicants

Your FinCEN Resource: This FinCEN published guide answers many of your questions regarding this new reporting requirement. Compliance for BOI is not satisfied by your annual income tax return, buy rather a separate system maintained by FinCEN.

What Does the Guide Include?

1. Does my company have to report its beneficial owners?

a. what's a reporting company

b. is my company exempt

c. what happens if my company doesn't report

2. Who is a beneficial owner of my company?

a. identify your company's beneficial owners

b. what is substantial control

c. what is an ownership interest

d. who qualifies for an exemption

3. Does my company have to report its company applicants?

a. is my company required to report its company applicants

b. who is the company applicant of my company

4. What specific information does my company need to report?

a. what information should I collect

b. what is a FinCEN identifier

5. When and how should my company file its initial report?

a. when should my company file its initial BOI report

b. how does my company file a BOI report

6. What if there are changes to or inaccuracies in reported information?

a. what should I do if previously reported information changes

b. what should I do if I learn of inaccuracies in a report

c. what should I do if my company becomes exempt after already filing a report

https://www.fincen.gov/boi/small-entity-compliance-guide

When Do I Report? FinCEN began accepting reports on January 1, 2024.

1. If your company was created or registered prior to January 1, 2024, you will have until January 1, 2025 to report BOI.

2. If your company is created or registered in 2024, you must report BOI within 90 calendar days after receiving actual or public notice 

that your company’s creation or registration is effective, whichever is earlier.

3. If your company is created or registered on or after January 1, 2025, you must file BOI within 30 calendar days after receiving actual or 

public notice that its creation or registration is effective.

4. Any updates or corrections to beneficial ownership information that you previously filed with FinCEN must be submitted within 30 days.

FinCEN BOI e-File Reporting Website:

https://boiefiling.fincen.gov/

What is a FinCEN ID for individuals?

A FinCEN ID is a unique identifying number issued to an individual by FinCEN. Although there is no requirement to obtain a FinCEN ID, doing so can simplify the reporting process.

What does a FinCEN ID do for individuals?

An individual beneficial owner or company applicant's FinCEN ID can be reported instead of required information about that individual on the reporting company's Beneficial Ownership Information Report (BOIR) submitted to FinCEN.

Apply for your FinCEN ID - very simple:

https://fincenid.fincen.gov/landing

Filing is quick, secure, and free of charge. It is not an annual requirement—unless a company needs to update or correct information, it only needs to file once. FinCEN expects that most companies will be able to file without the help of an attorney or accountant, and that the filing process for those with simple ownership structures may take 20 minutes or less. Companies that existed before 2024 have until January 1, 2025 to file, while companies created or registered in 2024 must file within 90 days of receiving creation/registration notice. More information, along with FinCEN’s E-Filing System, is available at https://www.fincen.gov/boi.