Daniel HonanFounder, Profitable Painter CPA PLLC · I help painting contractors increase profits & cash flow while reducing taxes♦ Bookkeeping ♦ Tax

Painting Business Owners: Learn who’s 𝘯𝘰𝘵 exempt from the Corporate Transparency Act.

Name: Painting Business Owners: Learn who’s 𝘯𝘰𝘵 exempt from the Corporate Transparency Act.
Uploaded: 2023-11-27T17:37:47+00:00
Duration: 43 s
Channel: Daniel Honan
Description: In this brief explanatory segment, the speaker outlines which business structures fall under the reporting requirements of the Corporate Transparency Act…

27 Nov 2023 · 1 min

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In this brief explanatory segment, the speaker outlines which business structures fall under the reporting requirements of the Corporate Transparency Act (CTA). The key points are: any Limited Liability Company (LLC) is covered regardless of its tax election (whether taxed as an S corporation, a disregarded entity, or otherwise); partnerships are also subject; entities taxed as S corporations must comply; and any corporation that is officially recognized by a state—i.e., formed by filing formation documents with a Secretary of State or a comparable authority (including Indian tribes)—is included. The CTA’s reach is defined by the act of filing formation paperwork, so virtually any entity that was formally created through a state filing is likely subject. Additionally, the rule applies to entities operating in the United States, whether the business is domestically based or a foreign company doing business in the U.S.

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If you have an LLC, regardless of how that LLC is taxed, so it could be taxed as an S corp, could be taxed as a disregarded entity. If an LLC exists, this applies to you. If you have a partnership, this applies to you. If you are being taxed as an S corp, this applies to you. If you have incorporated as an officially state-recognized corporation, this applies to you as well. It's interesting, in the paperwork, it basically says any entity created by the filing of a document with a Secretary of State. Or any similar office under the law, or a state or Indian tribe. So if you had to file paperwork to form your company, this probably applies to you. Just being in the United States, this definitely applies to you, whether your company's in the United States or if it's foreign.