iPlan Law - Business Planning

The Corporate Transparency Act's Reporting Requirements Are Here!

The Corporate Transparency Act's requirement to report the Beneficial Ownership Information (BOI) for businesses to the Financial Crimes Enforcement Network (FinCEN) of the U.S. Treasury. FinCEN can enforce this requirement with criminal and civil penalties, so it cannot be ignored. If you own a small business, including a Limited Liability Company or LLC, then your business entity probably must report. This video sets forth the types of business entities that must report, what they must report, the deadlines for reporting, and the penalties for not reporting. Companies must report the personal information of their beneficial owners, meaning those who have ownership or control over the business. The personal information includes names, dates of birth, and copies of licenses, passports, or other approved IDs. Because the use of the information reported will be limited, the CTA’s reporting requirements will not necessarily undermine asset protection strategies that rely on privacy. However, you can assume that state and federal agencies involved in law enforcement and taxes will have access to this information. Now's the time to review your business documents and tax filings to be sure everything is consistent. If your business existed before 2024, you must submit the required information by the end of 2024.

Corporate Transparency Act Reporting Requirements Are Coming!

The Corporate Transparency Act's requirement to report the Beneficial Ownership Information (BOI) for businesses to the Financial Crimes Enforcement Network (FinCEN) of the U.S. Treasury. FinCEN can enforce this requirement with criminal and civil penalties, so it cannot be ignored. If you own a small business, including a Limited Liability Company or LLC, then your business entity probably must report. This video sets forth the types of business entities that must report, what they must report, the deadlines for reporting, and the penalties for not reporting. Companies must report the personal information of their beneficial owners, meaning those who have ownership or control over the business. The personal information includes names, dates of birth, and copies of licenses, passports, or other approved IDs. Because the use of the information reported will be limited, the CTA’s reporting requirements will not necessarily undermine asset protection strategies that rely on privacy. However, you can assume that state and federal agencies involved in law enforcement and taxes will have access to this information. Now's the time to review your business documents and tax filings to be sure everything is consistent. If your business existed before 2024, you must submit the required information by the end of 2024.

Criminal Penalties for Business Owners Who Don’t Report!

The Corporate Transparency Act goes into effect on January 1, 2024. Over 32 million small businesses will have to report who owns and controls the businesses to the Financial Crimes Enforcement Network (FinCEN). Do not assume your business does not have to report under the Corporate Transparency Act. The penalties for failing to report the required information are severe: they include up to two years in prison and civil fines of $500 per day of noncompliance.

Does the Corporate Transparency Act Blow Asset Protection

The Corporate Transparency Act requires personal information of individuals associated with business entities to be disclosed to the Financial Crimes Enforcement Network (FinCEN). However, this does not necessarily blow asset protection strategies dependent in part upon privacy.

1031 Exchange Out of CA

How do real estate investors pull their investments out of California without getting hit by a huge capital gains tax? In this video, Daniel Van Slyke, an attorney licensed in California and Texas, explains how the 1031 Exchange makes this possible. This video starts by exploring the reasons some real estate investors are leaving California, including the high costs of business, the lawsuit environment, and legislation and regulations adverse to landlords. Through a 1031 Exchange, the taxpayer can defer paying federal capital gains tax when selling one investment property and purchasing another of equal or greater value. The California Franchise Tax Board allows for deferral of California’s capital gains tax where the taxpayer follows the rules of the 1031 Exchange. However, California has additional reporting requirements. No matter where the newly purchased replacement property is located, California requires an annual report and payment of the deferred capital gains tax when the replacement property is finally sold. You can check out of California, but you can't leave California’s capital gains tax behind! California will follow your replacement property until you die, donate the replacement property to a non-profit, or pay California’s capital gains tax.