FinCEN BOI Compliance

With the federal Corporate Transparency Act (CTA) now in full effect and New York’s LLC Transparency Act (NY LLCTA) on the horizon, ensuring compliance is critical to protect your business from substantial penalties. Our firm assists in guiding businesses through these complex regulations, providing clear, actionable advice to keep you compliant.

Key Updates & Deadlines:

• Federal Corporate Transparency Act (CTA) is Active:
  • The recent ruling in the Samantha Smith case confirms the CTA’s enforcement.
  • Important: The deadline for existing entities to file their Beneficial Ownership Information (BOI) reports is March 21, 2025.
  • New entities formed must file within 90 days of formation.
  • Corrections must be filed within 30 days of discovering inaccuracies.
  • Fines for non-compliance are $591 per day.
• New York LLC Transparency Act (NY LLCTA) Effective January 1, 2026:
  • This act introduces new reporting requirements specifically for New York LLCs.
  • All New York LLCs, including those potentially exempt from federal rules, must comply.

Understanding the Acts:

What is the Corporate Transparency Act (CTA)?

The CTA mandates that most U.S. “Reporting Companies,” including LLCs, corporations, and certain trusts, report beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN). This aims to combat financial crimes like money laundering.

What is a “Reporting Company” under the CTA?

• A “Reporting Company” is generally any corporation, LLC, or other entity created by filing with a state’s secretary of state or similar office.
• There are specific exemptions, such as for large operating companies, certain regulated entities, and others. It is critical to determine if your company falls under the definition of a Reporting Company.

What is the New York LLC Transparency Act (NY LLCTA)?

Taking effect January 1, 2026, the NY LLCTA requires all LLCs operating in New York to report beneficial ownership information to the New York Department of State (NYDOS).

Key Differences Between Federal and New York Requirements:

• Scope: CTA covers broader entity types; NY LLCTA focuses solely on LLCs.
• Applicant Information: NY LLCTA requires disclosure of “applicant” information, even for pre-2026 entities.
• Exemption Reporting: NY LLCTA requires annual attestations for exempt LLCs.

Penalties for Non-Compliance:

• Federal (CTA):
  • Civil and criminal penalties, including fines up to $10,000 and imprisonment up to two years.
• New York (NY LLCTA):
  • Business suspension after 30 days’ notice.
  • $500 per day fine by the NY Attorney General.
  • Potential dissolution after two years of non-compliance.

How We Can Help You:

Our legal team can assist with both CTA and NY LLCTA. We provide comprehensive services, including:

• Reporting Company Determination: Helping you determine if your business is a reporting company under the CTA.
• Beneficial Ownership Identification: Accurately determining who qualifies as a beneficial owner.
• Exemption Assessment: Evaluating your eligibility for exemptions under both acts.
• Report Preparation & Filing: Ensuring accurate and timely filing of all required reports.
• Compliance Strategy: Developing a tailored compliance plan to meet your specific needs.
• NY LLCTA preparation: helping you prepare for the forthcoming implementation.

Why Choose Our Firm?

• Expertise: Deep understanding of corporate law and FinCEN compliance.
• Personalized Service: Tailored solutions to meet your unique business needs.
• Proactive Approach: We stay ahead of regulatory changes to keep you informed.
• Proven Track Record: We’ve helped numerous businesses achieve and maintain compliance.

CLICK HERE to learn about the New York LLC Transparency Act (NY LLCTA)

Signed into law on March 1, 2024, by Governor Kathy Hochul, the New York LLC Transparency Act (NY LLCTA) will take effect on January 1, 2026. It mirrors many aspects of FinCEN’s BOI Rule, but with key differences that LLCs in New York must consider. All LLCs formed or registered to do business in New York, even those exempt from FinCEN’s rule, must report beneficial ownership information to the New York Department of State (NYDOS).

Key Differences Between the NY LLCTA and U.S. CTA

While both laws aim to increase transparency, there are important distinctions:

• Scope of Entities: The CTA applies to a broad range of entities, including corporations and partnerships, while the NY LLCTA focuses exclusively on LLCs.
• Applicant Information: Unlike the CTA, the NY LLCTA requires LLCs to disclose information about “applicants” who filed or directed the filing of LLC formation or registration documents, even for entities formed before January 1, 2026.
• Exemption Reporting: Exempt LLCs must still submit an annual attestation under the NY LLCTA, which is not required under the CTA.

How Our Law Firm Can Help

Compliance with these laws is complex, but our experienced legal team is here to help. We specialize in corporate law and FinCEN compliance, guiding LLCs through both the CTA and NY LLCTA requirements. We assist in:

• Identifying beneficial owners
• Determining exemption eligibility
• Filing initial and annual reports
• Ensuring compliance with federal and state regulations

Take Action Now

The consequences of non-compliance are severe, including hefty fines, business suspension, and potential criminal liability. Contact our law firm today to ensure full compliance with the Corporate Transparency Act and New York’s LLC Transparency Act. Our lawyers are ready to protect your business and ensure you meet all federal and state requirements.

CLICK HERE to contact the law firm.

CLICK HERE to get started with your FinCEN compliance today.