Corporate Transparency Act - Frequently Asked Questions
Q: What is Corporate Transparency Act? What is Beneficial Ownership Interest?
A: The Corporate Transparency Act (CTA) is the Federal law that requires certain entities to disclose information about their owners and those who exercise control over them. The CTA was enacted in 2021 as part of the National Defense Authorization Act and took effect on January 1, 2024. In the context of HOAs, Beneficial Owners are the Board of Directors. All beneficial owners must report their interest or face significant individual penalties of $500 per person per day. Learn more here: https://fincen.gov/boi
Q: What do I need to do?
A: Board members need to create a Fin Cen ID. Go here to create your FinCen ID: https://fincenid.fincen.gov/landing (reference the email sent to boards for instructions on sending us your FinCenID). Can't find it? Contact help@boulderhoa.com
Q: But aren’t we exempt? Are we a 501(c)(4)
A: While your HOA is a non-profit corporation, it’s very unlikely it is exempt. It is also unlikely the HOA is a 501(c)(4). You would need to pay an attorney to tell you that the HOA is in fact exempt. Do not assume! The penalties are $500 PER PERSON PER DAY. Legal fees are $300-$500 per hour. So keep in mind that trade off. In our industry discussion with industry experts, they have all told us the same thing - better to comply and very few HOAs are exempt. (3 attorneys, 2 accounts, and 2 software providers).
Q: Is there a fee?
A. No there is no fee to get a FinCen ID. It takes about 5 minutes or less if you have your driver’s license in hand. There is also no fee for the beneficial ownership report. We will be charging a small fee for our time to do the registrations. Here is the main site: https://www.fincen.gov/boi
There is an option if you want to use a third party and there is a fee for using this site. We are an affiliate for SnapFile if you are looking for a tool to help you manager this requirement.:
Q. Where can I read more?
A. SnapFile has a bunch of great articles. This service does charge a fee if you use it file, but the articles are free. https://www.getsnapfile.com/boi-reporting-101
We do have an affiliate link if you are interested in their service:
Q. I'm a board member and I can't figure this out!
A: Contact help@boulderhoa.com or set up an appointment on our contacts page.
Q. I have more questions!
A: Send them to help@boulderhoa.com and we'll get it added here!