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Beneficial Ownership Information Reports: How to File for HOAs

Beneficial Ownership Information Reports for HOAs are critical. The new reporting guidelines under the recently enacted Corporate Transparency Act have a direct impact on your HOA.  Is your HOA staying compliant and do you know how to file the required beneficial ownership reports? If not, you could face hefty fines. TurboCTA can help.  

Understanding Beneficial Ownership Information Reports for HOAs Under the Corporate Transparency Act

The Corporate Transparency Act (CTA) aims to prevent money laundering and potential terrorist funding. It does so by requiring certain U.S. companies to share information about their primary owners and founders. This information is submitted to the Financial Crimes Enforcement Network (FinCEN).

The new law started on January 1, 2024, and affects groups like homeowner associations (HOAs). It also affects various other groups and entities, including corporations, limited liability companies (LLCs), partnerships, and other business entities operating in the United States. Following CTA rules is essential for all these groups.  Failure to do so can result in severe fines and penalties, and possible jail time.

What Does BOI Reporting for HOAs Mean

Beneficial ownership information reports for HOAs hold the HOA accountable and keep them compliant.  BOI reporting requires specific companies, known as reporting companies, to provide FinCEN with information about their primary owners. This information encompasses names, addresses, birthdates, and ID numbers. Established HOAs must comply by January 1, 2025, while newer ones adhere to different deadlines.

CTA Deadlines HOAs need to Know

  • For companies/HOAs that were established prior to January 1, 2024, the deadline for submitting their initial BOI reports is January 1, 2025.
  • Companies/HOAs formed on or after January 1, 2024 are obligated to file their initial BOI reports within 90 days from the date of their establishment.
  • In the case of companies/HOAs established on or after January 1, 2025, they will be granted a 30-day window from their date of formation to submit their initial reports.

New Rules in Corporate Transparency Act Reporting

It’s important to know that if there is a change in your HOA status or contact information, it MUST be reported. Reporting companies must continuously update their BOI report when there are changes in information, such as a company’s address or a new Doing Business As (DBA) name, within 30 days of the change. Similarly, any alterations to a beneficial owner’s details, including name, address, or unique identifying number, should also be reported promptly.

Understanding HOA Beneficial Owners and Company Applicants

Beneficial owners play a vital role in a company’s operations or control. Therefore, HOAs must identify beneficial owners meeting two criteria: 25% or more ownership stake in the HOA and significant control. These owners can include investors with ownership in multiple units exceeding the 25% threshold and members of the HOAs’ Board of Directors. Typically, members of the Board of Directors hold significant control over the HOA. Consequently, their information must be included in the HOA’s BOI report, along with individuals who own 25% or more.

Beneficial Ownership Information Reports for HOAs

Side note: There are no penalties for providing additional information on a BOI report. In cases of uncertainty regarding an individual’s status as a beneficial owner, it is advisable to include their information in the HOAs’ BOI report as a best practice.

Do HOAs Need to Follow Corporate Transparency Act Rules?

Most HOAs will need to file BOI reports, except for those organized as 501(c)(3) tax-exempt organizations. HOAs typically operate as non-profit corporations but don’t meet the criteria for charitable organizations under the Tax Code.

Therefore, most HOAs must file BOI reports with FinCEN. If your HOA hasn’t educated potential beneficial owners and company applicants about FinCEN’s new reporting requirements, it’s important to do so. 

The Corporate Transparency Act Requirements

Failing to submit a BOI report can lead to penalties. These penalties may include daily fines of up to $500, total fines reaching $10,000, or imprisonment for a maximum of two years. Furthermore, FinCEN has the authority to hold reporting companies, beneficial owners, senior officers, and company applicants responsible for these penalties.

TurboCTA’s solution makes filing beneficial ownership information reports for HOAs easy. Just appoint one person to file and the platform will guide you through the rest.

TurboCTA’s BOI Reporting for HOAs

TurboCTA utilizes an innovative platform designed to streamline the process of filing a beneficial ownership information report for HOAs. The user-friendly software simplifies the collection and organization of required information, making compliance efforts efficient and effective.

Benefits of the TurboCTA Solution

  • Simplifies filing beneficial ownership information reports for HOAs
  • Collects essential details about beneficial owners and company applicants
  • Ensures accurate, error-free reporting to FinCEN
  • Provides timely reminders and notifications for reporting deadlines
  • Easy-to-navigate interface for easy submission and compliance
  • Allows HOAs to focus on core operations while meeting regulatory obligations

Ongoing Support in Filing Beneficial Ownership Information Reports for HOAs

With TurboCTA, HOAs can quickly gather essential details about beneficial owners and company applicants, such as names, addresses, birthdates, and identification numbers. The do-it-yourself platform ensures accurate compilation and formatting of all necessary information according to FinCEN’s requirements, reducing the likelihood of errors or omissions.

Moreover, TurboCTA offers features to help HOAs stay on track with reporting deadlines. These features provide reminders and notifications to make sure that changes to beneficial ownership information are promptly communicated to FinCEN within the required timeframe.

By utilizing TurboCTA’s innovative solution, HOAs can file BOI reports with confidence and peace of mind. The platform’s intuitive interface and comprehensive functionality make the compliance process more manageable.  There is no need to spend money to have someone else file for you.  YOU have control over your compliance efforts.

Beneficial Ownership Information Reports for HOAs

Beneficial Ownership Information Reports for HOAs: Your Partner in Compliance

Following the Corporate Transparency Act is essential for your HOA.  Using a self-guided, online solution allows you to manage your reports and have complete control throughout your compliance journey.  TurboCTA helps you file accurately by deadline and minimizes your risk of fines and penalties.

Discover how TurboCTA can make filing a beneficial ownership information report for HOAs a breeze.  Contact us today!

The Corporate Transparency Act Requirements