What is the Corporate Transparency Act?
Effective on January 1, 2024, the Corporate Transparency Act will govern corporations, and in summary, was enacted to prevent and detect financial crimes.
The unintended consequence is that all corporations, unless specifically exempt (regardless of not-for-profit status) are required to report Beneficial Ownership Information. This means that condominium and homeowners associations are not exempt from reporting.
The GOOD news:
- Reporting deadline is January 1, 2025, so we will have a year to navigate this new requirement
- You have the opportunity to voice your opinion and opposition to your legislative representative. There is a chance this law could be amended before the end of 2024.
Click here to reach out to your Senator and US Representative: https://www.votervoice.net/CAI/Campaigns/108066/Respond
The BAD news:
- There is no current form or system to submit this information to the government, as registration does not open until or after January 1, 2024. We are not sure what this will look like.
- The Act requires those reporting to provide sensitive information
- Non-compliance could result in civil penalties, criminal penalties, and prison time
- Any changes to the Board composition or contact information must be reported within 30 days of the change (i.e. resignation, appointment, change in address for that board member)
If you have any questions, please let our HOA team know. But for now, sit tight, and we’ll advise you of any necessary reporting and how to accomplish it!
Attorney Lindsey A Wrubel
Ohio State Bar Association Certified Residential Real Estate Specialist