Buying in an LLC? Read this first.

You may begin hearing more about something called "Beneficial Ownership Reporting" at closing, so we wanted to give you a simple, stress-free explanation of what's changing.

Under the Corporate Transparency Act (passed by Congress in 2021), the federal government is working to prevent the use of shell companies in financial transactions. For those of you paying cash for properties involving LLCs, corporations, and some trusts, you may be asked for additional information about individuals involved with these entities prior to closing. The information could include details about who owns, controls, or benefits from that entity, as well as full legal names and addresses.

That might sound like a lot, but in reality, it should all be manageable. As information is needed, we will work hand in hand with our trusted closing attorneys to ensure a smooth transaction.

Fore more information, visit FinCEN's FAQ page: https://www.fincen.gov/boi-faqs#A_1