The Corporate Transparency Act (“CTA”) rules become effective January 1, 2024. If your estate plan includes an entity that has filed any document with the Secretary of State in New Mexico or similar agency in another state, that entity is probably subject to the CTA.
Reports for entities already in existence will be due by December 31, 2024. Entities formed after January 1, 2024 must report within 90 days of formation.
Trusts may be affected by this law. Trusts are deemed Beneficial Owners either via the 25% ownership threshold OR Substantial Control via its Trustee. For example, if a Trust holds a 25% membership interest in an LLC or the Trustee is a Manager, the Trust may have to comply with the CTA.
While there is still uncertainty about compliance with the CTA, I wanted to alert you to this important issue. Civil fines of $500/day could be imposed for failure to comply, along with criminal penalties.
FinCEN’s guidance and educational materials are located at https://www.fincen.gov/boi.
Please follow these two links for more information: