The Corporate Transparency Act of 2024- What Landlords Need to Know

Many landlords hold their investment/rental property in limited liability companies or other legal entities. The typical reason for doing so is to provide the landlord with certain legal protections, such as “limited liability”, i.e., the landlord cannot generally be held personally liable for the entity’s debts or liabilities (of course, there are numerous exceptions to this general rule). Depending on the state where the Landlord’s entity was filed, there may or may not be further reporting requirements.

The Corporate Transparency Act of 2024 now requires the typical landlord entity to 

Historically, corporate regulations passed by governmental agencies have not applied to smaller, single member entities.  However, effective January 1, 2024, with certain limited exceptions, every entity (new and existing) must file a report with the Financial Crimes Enforcement Network (“FinCEN”). 

Please note that there are penalties associated with non-reporting, ranging from civil penalties to criminal penalties.