Do You Have an LLC? Here's What You Need to Know About New Reporting Requirements

By Nicola Cyr, CFP®, EA

Do you have an LLC for your side gig? Maybe a rental property LLC? Or perhaps you're thinking about starting a business? If so, there's a new law you need to know about - and the clock is ticking on the deadline to comply.

The Corporate Transparency Act (CTA) affects millions of small business owners, from Etsy shop owners to real estate investors. Even if your LLC is just a "small thing on the side," you're required to report information about your business to the federal government starting in 2024.

What Is the Corporate Transparency Act?

The CTA requires most LLCs and corporations to report information about their owners to the Financial Crimes Enforcement Network (FinCEN). While it might sound intimidating, the goal is straightforward: to prevent criminals from using anonymous shell companies for illegal activities.

But here's the thing - this law affects regular business owners like you, not just large corporations. If you have:

• An LLC for your rental properties
• A side business selling products online
• A consulting business
• Any other corporation or LLC, even if it's not currently active

...you likely need to file a report.

What Do You Need to Report?

The reporting requirements are simpler than you might think. You'll need to provide:

• Basic company information
• Names, birth dates, and addresses of anyone who owns 25% or more of the business
• Information about who makes important decisions for the company

When Do You Need to File?

• If you created your business before January 1, 2024: You have until January 1, 2025
• If you create a new business in 2024: You have 90 days from the formation
• After 2024: New businesses will have 30 days to file

What Happens If You Don't File?

This isn't just paperwork you can ignore. The penalties can be steep:

• Fines up to $500 per day (increases annually, $591/day in 2024) for civil penalties
• Criminal penalties include up to 2 years in prison

How CGN Advisors Can Help

At CGN Advisors, we work with many business owners who are juggling multiple responsibilities. Whether you're running a side gig or managing multiple LLCs, we can help you:

• Understand if these new requirements might apply to your business and refer you to a legal professional to confirm
• Review your business structure
• Connect you with legal professionals who can assist with filing
• Create a strategy for ongoing compliance

Our team brings both professional expertise and personal understanding to the table - we're business owners too, and we know how challenging it can be to keep up with changing regulations while running your business.

Take Action Now

Don't let these new requirements catch you off guard. Call our Manhattan, KS, office at (785) 340-3434 or our Rogers, AR, office at (479) 335-1034 to schedule a meeting. We can help you navigate these new requirements while keeping your focus on what matters most - growing your business.

This article is a high-level summary of publicly available resources provided by FinCEN and is not intended as the unintentional practice of law.  While we can educate you regarding the law and public resources, we will not provide any recommendations specific to your situation or perform any Beneficial Ownership filings under the Corporate Transparency Act.

About Nicola 

Nicola Cyr is the Director of Operations & Compliance at CGN Advisors, a Fee-Only, financial advisory firm based in Manhattan, Kansas. CGN’s team of financial advisors is made up of native Midwesterners who are passionate about helping clients plan for the future. An advisor since 2017, Nicola utilizes her in-house tax preparation and planning proficiency to strengthen client relationships with their advisors and the firm as a whole. She appreciates the value and team approach CGN provides, allowing them to offer services in a range of complex planning areas without the need to outsource. Combining her affinity for educating people, financial puzzles, and a personal motivation for excellence, Nicola enjoys the challenge of balancing the quantitative “right answer” with the qualitative aspect of behavioral finance for each unique client situation. 

Nicola holds a Bachelor of Science in Personal Financial Planning and a minor in English from Kansas State University, the CERTIFIED FINANCIAL PLANNER® certification, as well as the Enrolled Agent (EA) designation, which permits her to practice before the IRS. Prior to joining the CGN team, Nicola gained experience as a licensed State Farm Insurance saleswoman and as a research assistant for Stu Heckman, PhD, CFP®, assisting with research papers and development of undergraduate class content.

Nicola and her husband, Ryan, have two sons, Ezra and Elias, daughter, Evangeline, and a faithful hound, Phoebe. Most of Nicola’s free time is spent with family, participating in her children’s extracurricular activities, and nurturing her passion for houseplants (owning and caring for 50+ between the office and home). To learn more about Nicola, connect with her on LinkedIn.

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