Starting January 1, 2024, most corporations and LLCs must report their beneficial owners to prevent money laundering and terrorism financing. You'll need to disclose anyone owning more than 25% or with substantial control, along with your company's legal name, tax ID, formation state, and business address. Publicly held companies are exempt.
Have you heard rumblings about some new reporting about to go into effect for January 1, 2024? Yes, there is new reporting set to go in effect for January 1, 2024, where you have to report ownership of any entities where you own more than 25% ownership interest, you have substantial control of that company. Now, where we report that it's going to be under the federal government, they're looking to stop opportunities for money laundering, terrorism, all these types of things where people form entities to hide activities and nobody really knows who the owners are. That's what they're trying to eliminate. Or stop here. There are some exemptions. If you're a publicly held company owner, you don't have to report that. What has to be reported? Well, first, if you have an entity, a corporation, C Corp or an S Corp, a limited liability company, or any entity formed through the Secretary of State, those are the entities we're talking about that are subject to this new reporting requirement. What gets reported, the legal name of the company, their trade names, their tax ID number, where they're formed, what state and their business addresses. Also, the beneficial owners are anybody who owns more than 25% with substantial control.
