Answer:
- Yes. Beginning January 1, 2024, most small entities—including single member LLCs—must file online reports with the federal government, disclosing information about the beneficial owners of the entities. This new reporting requirement—estimated to impact at least 32.6 million entities in 2024—was created by the Corporate Transparency Act (CTA). Existing entities will have until January 1, 2025, to make their first beneficial ownership information (BOI) report.
- Penalty: The CTA authorizes civil reporting failure penalties of not more than $500 (inflation adjusted to $591) for each day that the violation continues or has not been remedied and criminal penalties up to $10,000. The statute also calls for possible imprisonment of up to two years.