Own an LLC or a PLLC? You Need to do this Now!

Posted By: Micah Perkins Legislation,

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Is your counseling practice set up as an LLC or a PLLC? If so, you need to know about the The Corporate Transparency Act (CTA). The CTA, effective January 1, 2024, was enacted as part of the National Defense Authorization Act for Fiscal Year 2021, The legislation creating the CTA sought to respond to the long-standing challenge of anonymous shell companies utilized for various illicit purposes, ranging from money laundering to terrorist financing. 

The CTA requires corporations, limited liability companies (LLC), professional limited liability companies (PLLC) , as well as, “limited partnerships, business trusts, and other ‘similar entities’  that are created or registered by the filing of a document with a secretary of state or a similar Indian tribal office”, to disclose information regarding their beneficial owners to the Financial Crimes Enforcement Network (FinCEN).  

Beneficial owners are defined as individuals with at least a 25% ownership stake or substantial control over the company.  

To file your Beneficial Ownership Report (BOI) with the Financial Crimes Enforcement Network (FinCEN), a division of the U.S. Department of Treasury, go to FinCEN.gov. 

For questions about the CTA, readers are encouraged to contact their attorney or tax professional.  

This article was written by Micah Perkins with assistance from ChatGPT.

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