Are You Using LLCs in Syndication Correctly? Avoid FinCEN Risks!
27 Nov 2024 · 0 min
0:27
In this segment, the presenter explains that when an LLC is owned by another LLC—such as using a dedicated LLC to make a passive investment in a real‑estate deal—or when a personal LLC is used to represent an individual in the management entity of a syndication, the owner may be eligible to obtain a FinCEN identifier (FinCEN ID) for that entity. Securing a FinCEN ID can help ensure compliance with anti‑money‑laundering regulations and reduce the risk of regulatory scrutiny for passive investors and syndicate managers.
