Exemptions
Not all entities need to report under the CTA. You are exempt if you:
IT IS ESSENTIAL TO UNDERSTAND HOW THIS LAW AFFECTS YOU, AS NON-COMPLIANCE CAN RESULT IN STEEP PENALTIES.
1. Employ more than 20 full-time employees in the U.S. 2. Have a physical office in the U.S. 3. Generate more than $5 million in gross receipts or sales annually.
Most rental property LLCs will not meet these thresholds, making them subject to the CTA's requirements.
WHAT INFORMATION MUST BE REPORTED? If your rental property LLC or corporation is considered a reporting company, you must disclose the following: Beneficial Owner Information A beneficial owner is anyone who: 1. Owns or controls 25% or more of the company, or 2. Exercises substantial control over the company. For each beneficial owner, you must provide: • Full legal name • Date of birth • Residential address
• A unique identifying number (such as a passport or driver's license number) along with a scanned copy of the identification document.
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