FAQ: Corporate Transparency Act

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A:  The Corporate Transparency Act (CTA) is the Federal law that requires certain entities to disclose information about their owners and those who exercise control over them. The CTA was enacted in 2021 as part of the National Defense Authorization Act and took effect on January 1, 2024. In the context of HOAs, Beneficial Owners are the Board of Directors. All beneficial owners must report their interest or face significant individual penalties of $500 per person per day.

 A: EACH board member has to get their own individual FinCen ID (you only need a drivers license, ID card, or passport - just one).

Each board member needs to go here to do that: https://fincenid.fincen.gov/landing

Then one of you has to gather the FinCenIDs from all the board members and tie it to the Tax ID of the HOA. The Tax ID can be found on your tax return in the portal, under Documents > Owners - Tax Returns

You can file the beneficial ownership report (HOAs tax ID + Fincen IDs) here: https://boiefiling.fincen.gov/

Whomever fills out the report will list themselves as the company applicant (if required).

A: While your HOA is a non-profit corporate, it’s very unlikely you are exempt and very unlikely you are a 501(c)(4). You would need to pay an attorney to tell you that you are in fact exempt. Do not assume! The penalties are $500 PER PERSON PER DAY. Legal fees are $300-$500 per hour. So keep in mind that trade off.  In our industry discussion wiht industry experts, they have all told us the same thing - better to comply and very few HOAs are exempt.

A. No there is no fee. It takes about 5 minutes or less if you have your driver’s license in hand. There should be no fee. If someone is charging you a fee than you may inadvertently be on the wrong website. Here is the main site: https://www.fincen.gov/boi

There is an option if you want to use a third party and there is a fee for using this site.  We are an affiliate for SnapFile if you are looking for a tool to help you manager this requirement.:

https://www.getsnapfile.com?via=SelfManageHOA

A. No there is no fee. It takes about 5 minutes or less if you have your driver’s license in hand. There should be no fee. If someone is charging you a fee than you may inadvertently be on the wrong website. Here is the main site: https://www.fincen.gov/boi

There is an option if you want to use a third party and there is a fee for using this site.  We are an affiliate for SnapFile if you are looking for a tool to help you manager this requirement:

https://www.getsnapfile.com?via=SelfManageHOA

A. SnapFile has a bunch of great articles. This service does charge a fee if you use it file, but the articles are free. https://www.getsnapfile.com/boi-reporting-101

We do have an affiliate link if you are interested in their service:

https://www.getsnapfile.com?via=SelfManageHOA