For the Notary Public/Loan Signing Agents that have established a business entity, such as LLC, Sub-Scorp, Partnerships, or Corporation are you aware of the “Corporate Transparency Act/Beneficial Ownership”? If you are not, you may want to read up on the CTA.
“What penalties do individuals face for violating BOI reporting requirements?
As specified in the Corporate Transparency Act, a person who willfully violates the BOI reporting requirements may be subject to civil penalties of up to $500 for each day that the violation continues. However, this civil penalty amount is adjusted annually for inflation. As of the time of publication of this FAQ, this amount is $591.
A person who willfully violates the BOI reporting requirements may also be subject to criminal penalties of up to two years imprisonment and a fine of up to $10,000. Potential violations include willfully failing to file a beneficial ownership information report, willfully filing false beneficial ownership information, or willfully failing to correct or update previously reported beneficial ownership information.
[Updated April 18, 2024]” Beneficial Ownership Information | FinCEN.gov
Large companies are exempt. They are companies with more than 20 full-time employees and reporting more than $5,000,000 in annual income. The exemption is #21. How is it that large corporations are above suspicion while the notary who has an LLC and works alone is suspect?
See page 12 here https://www.fincen.gov/sites/default/files/shared/BOI_Small_Compliance_Guide.v1.1-FINAL.pdf
That’s a very fair question and should be address to the current house of representatives on the federal level of our government.
These ‘larger’ companies often have FTC filings, investors, and other income reporting requirements that cover the CAT requirements. What the Feds are looking for are individuals who are using their businesses as cover for money laundering. I have had a few tax clients who were trying to use their car wash, pet care, or other cash based businesses to launder money. Since cash is easiest transaction to hide, cash based businesses are the easiest to launder money through.
There is a popular tax educator who is encouraging Notaries to start a business venture to handle the BOI registrations as a service. Please keep in mind that every E&O carrier I’ve spoken with is refusing to provide E&O insurance coverage for providing third party BOI registrations. BOI registrations are considered practicing law and my fellow tax professionals are not engaging this service. Until the dust settles and E&O carriers provide coverage I’m holding off.
With this in mind, if you intend to offer BOI registration services, please check with your E&O carrier before proceeding. Remember FINCEN is a large slow government bureaucracy that we anticipate make take years before it catches up with your business clients and you if your acting as a third party agent. Those $500 per day fines, plus interest, legal fees and the potential for lawsuits can add up to a financial colonoscopy later on.
Feel free to comment or pose any questions.
#Riverpointe Tax, Thank you for the clarifications and you bring out some of the complexities of being a Notary Public. A lot of people come into this field, thinking how easy it is to make money by just using a stamp and stamping paper. But one of the essential duties that we perform is fraud prevention and that may also involve the prevention of money laundering. Now we see how government policy(ies) changes can make our business more complicated. We have “landmines” to navigate, if we step on one and it can explode leaving us to face potential jail time, some hefty fines penalties, or both. This business is easy to enter, but if you do the wrong thing and the consequences can be very grave.
Always appreciate your information. Does transparency act apply to congress?? 
Such a fantasy to have political transparency! My son is an actor and writer ~ will suggest they make a movie with this premise ~ would be interesting to see results. Wonder who the cast would be for Supreme Court characters?
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