Have an old LLC or two laying around that was never used as intended? Wondering if you have to register them with FinCEN?
FinCEN Registration Not Required if You Meet all 6 Conditions
If you have an older entity (corporation, limited partnership, or LLC) that you haven’t used for some time, it may be considered dormant.
By now, you’ve heard about FinCEN—the Financial Crimes Enforcement Network, a division of the treasury department—and you may be wondering if you have to register the entity that you haven’t used for a few years.
In my latest YouTube video above, I cover the six criteria your unused entity must meet to be exempt from filing with FinCEN and avoid paying an exorbitant fine if you don’t file:
- The entity was in existence before January 1, 2020.
- The entity is not engaged in any active business.
- The entity is not owned by a foreign person.
- The entity has not experienced any change in ownership in the last 12 months.
- The entity has not sent or received any funds in an amount greater than $1,000 in the preceding 12 months.
- The entity does otherwise hold any kind of assets in the United States or abroad, does not own any interest in another company, or anything else.
If all of these are true, you do not have to register the entity.
Click here to watch my video where I cover this topic in depth.
Lee Phillips, JD
United States Supreme Court Counselor
