Big Brother & Business: Corporate Transparency Act is coming

October 13, 2023

Avoid Fines and Penalties by being ready

The Final Rule implementing Section 6403 of the Corporate Transparency Act (the CTA) was issued on September 30, 2022. The CTA is a sweeping, new regulation that will affect millions of companies, both domestic and foreign. The objective of the law is to require companies to reveal their beneficial ownership in order to assist the U.S. government in its efforts to identify bad actors, both foreign and domestic, who use the anonymity provided by various company structures in furtherance of their lawless activities. It is important that companies, their owners, and their senior management, be aware of the law and its requirements, which can be both complicated and difficult to navigate.

There is a good chance that anyone reading this will be affected by the implementation of CTA and, consequently, should understand it and be prepared to comply with it based on each situation. Effective this New Year, January 1, 2024, entities created through the filing of a document with a state government, and foreign entities registering to do business in the United States through the filing of a document with a state government, are required to submit company information, beneficial owner information and company applicant information to the Financial Crimes Enforcement Network (FinCEN).

Entities formed on January 1, 2024, or later will have 30 days from creation or qualification to submit such information. On September 28, 2023, however, FinCEN issued a request for comment on a proposal to extend the 30-day time period to 90 days for the submission of information for such companies. Should such proposal be finalized, the extension will only apply through 2024 with the 30-day time period to be reinstated as of January 1, 2025.

This is only a proposal at this time and until implemented such entities should proceed with the 30-day timeframe in mind. The 30-day time period will be triggered "by the earlier of the date on which the reporting company receives actual notice that its creation (or registration) has become effective or a secretary of state or similar office first provides public notice, such as through a publicly accessible registry, that the domestic reporting company has been created or the foreign reporting company has been registered."

Entities formed before January 1, 2024, will have until January 1, 2025, to submit company information and beneficial owner information, but will not be required to submit company applicant information. Companies are expected to submit their filings via a secure, online platform administered by FinCEN called the Beneficial Ownership Secure System or BOSS.

The Regulations, however, exempt 23 types of entities from being deemed a reporting company. These exempted entities tend to be larger or more heavily regulated entities. Reporting companies must file specified information on each of the company's beneficial owners with the understanding that a "beneficial owner" is any individual who exercises substantial control over the reporting company or owns or controls at least 25 percent of the ownership interest of the reporting company. The information to be reported includes the following:

(i)Full legal name;(ii)Date of birth;(iii)Current residential address; and(iv)A unique identifying number and issuing jurisdiction from an acceptable identification document, along with an image of that document. Such a document might include a driver's license or passport.

Excluded from the definition of beneficial owners are: (i) minor children (parents or guardians are required to report), (ii) nominees, (iii) employees, other than senior officers, (iv) future inheritors; and (v) creditors.

Penalties for the willful failure to report complete or updated beneficial ownership information, or the willful submission of or attempt to provide false or fraudulent beneficial ownership information can be severe.

These penalties may include civil fines of $500 per day for each day a violation continues and criminal penalties of imprisonment for up to two years and/or a fine of up to $10,000.

If you find yourself wanting more advice and information on how my team and I can help you avoid fines and penalties that may result from not complying with CTA 2024, we are available in person, by appointment or by Zoom. In South Texas, call us at 956-791-5422.

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Molding Your Financial Future in 2025

January 17, 2025

As we step into the new year, I find myself reflecting on the countless entrepreneurs, professionals, and business owners I’ve worked with throughout my career. Helping clients mold a shield of protection around their assets has been one of the most rewarding aspects of my practice. Time and time again, I’ve witnessed that success isn’t reserved for geniuses, nor does it require a fancy degree. The secret lies in action, strategy, and discipline—traits anyone can cultivate to achieve and maintain wealth. The Myth of Instant Wealth How often have we heard someone say, “When I win the lottery, I’ll finally be set”? It’s a common refrain, but let’s examine the reality. Imagine winning $10 million in the lottery. After choosing the lump sum option and paying taxes, you might walk away with only a fraction of that—perhaps $2 million. Without a solid financial plan, it’s no surprise that many lottery winners end up broke within a few years. True wealth isn’t about luck or flashy possessions. It’s about what you do with your resources and how you protect them. If you look around your community, the truly wealthy aren’t necessarily the ones with the biggest houses or newest cars. They’re often the ones who’ve taken calculated risks, lived within their means, and built unglamorous but steady businesses. These individuals mold the clay they’re given, creating shields of protection around their assets that ensure their financial stability for generations. The Trap of Looking Rich We’ve all seen it—the big house, luxury car, and designer wardrobe. But appearances can be deceiving. Many who look wealthy are drowning in debt, spending more than they earn, and chasing the illusion of success. As my wife lovingly calls it, Dickersonism #7: “Looking rich does not MAKE you rich.” True wealth is built on a foundation of solid, income-generating assets, not consumables. Falling into the trap of “keeping up with the Joneses” (or Kardashians) often leads to financial instability and missed opportunities to create lasting wealth. The Cost of Inaction One of the greatest obstacles to wealth and protection is inaction. Henry Ford famously said, “If you think you can, you can. If you think you can’t, you can’t. Either way, you’re right.” Inaction is the path of least resistance, but it’s also the path to missed opportunities and unfulfilled potential. Some hesitate out of fear or over-analysis, a condition I call “analysis paralysis.” It’s easy to get caught up in what could go wrong, but this mindset keeps you stagnant. Every successful person I’ve worked with has one thing in common: they took action. They understood the risks but focused on the rewards, moving forward despite uncertainty. Setting Your Course for 2025 If you haven’t taken steps to mold your financial future, now is the time. Ask yourself: Where do you want to be a year from now? In five years? In ten? Define your goals and begin building the path to reach them. Just as importantly, protect what you’ve built. Not having a plan to shield your assets is like running exposed electrical wiring—sooner or later, you’ll face unnecessary risks. A board-certified estate planning attorney can help you design a plan to safeguard your wealth, ensuring it stays secure for you and your loved ones. Take Control of Your Future Success doesn’t just happen—it’s molded. Listen to trusted advisors, but remember that the final decisions are yours to make. Clarify your vision, take bold steps, and build the life you’ve always dreamed of. At The J.M. Dickerson Law Firm, we’re here to guide you every step of the way. Whether in person, by appointment, or via Zoom, we’re committed to helping you create a legacy of success and security. Contact us today, we can help! South Texas: 956-791-5422 Central Texas: 830-302-4577 Let’s make 2025 your year of action, growth, and protection.

Embracing the Holidays as a Time for Estate Planning

December 20, 2024

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Start the New Year Strong: Four Steps to Success

December 13, 2024

As the end of the year approaches, it’s easy to feel the weight of unfinished tasks and the hustle of the holiday season. Between wrapping up work projects, preparing for family gatherings, and making plans for the future, this time of year can feel overwhelming. But amidst the busyness lies a valuable opportunity—the chance to press reset and prepare for a fresh start. The New Year offers a clean slate, making it the perfect time to reflect, reorganize, and refocus your goals. By dedicating some time to the right activities now, you can set yourself up for success in the months ahead. Here are four key steps to help you start the New Year on solid footing. Step 1: Reflect on the Past Year As the calendar flips to a new year, many of us naturally find ourselves looking back at the previous 12 months. This is the perfect moment to assess your professional and personal accomplishments, challenges, and growth. Ask yourself: • What were my biggest successes this year? • What goals did I miss, and why? • What strategies or habits worked well for me? • Where can I improve moving forward? Reflection isn’t just about identifying wins and losses; it’s about understanding the “why” behind them. Seek feedback from colleagues, mentors, or trusted peers to gain new perspectives. The more honest and thorough your evaluation, the more valuable it will be as a foundation for future planning. Step 2: Create a Game Plan for the Year Ahead Reflection is only the beginning. To make real progress, you need a clear and actionable plan for the year ahead. Start by defining your big-picture goal for the next 12 months. What’s the most important outcome you want to achieve? Once you have that, break it down into smaller, measurable objectives. For example, if your goal is to expand your business, your smaller objectives might include increasing marketing efforts, attending networking events, or launching a new service. Outline the steps needed to achieve each objective and set realistic timelines for completion. Revisit your goals regularly—at least quarterly—to ensure you’re staying on track or to adjust for any changes in your circumstances. Flexibility is key to maintaining momentum throughout the year. Step 3: Declutter Your Inbox An overflowing email inbox can be a constant source of low-grade stress. Ending the year with a streamlined and organized inbox can give you a fresh sense of control as you head into January. Here’s how to tackle it: • Respond immediately to any urgent or unresolved messages. • Delete emails that are no longer relevant. • Unsubscribe from newsletters or mailing lists you no longer find useful. • Create folders and filters to better organize incoming messages moving forward. To keep your inbox manageable, schedule regular cleanups throughout the year. Whether monthly or quarterly, these maintenance sessions will prevent clutter from building up again. Step 4: Knock Out Small Tasks The small, unfinished tasks lingering on your to-do list can be more draining than you realize. Use this time to cross off as many as possible before the New Year begins. • File paperwork that’s been piling up. • Respond to emails you’ve been avoiding. • Wrap up loose ends on ongoing projects. Completing these small but nagging tasks will give you a sense of accomplishment and free up your mental bandwidth for bigger goals in the New Year. Starting January with a clean slate will allow you to hit the ground running. Your Fresh Start A new year is a chance to realign your priorities, set meaningful goals, and approach your work with renewed focus. By reflecting on the past year, setting actionable goals, decluttering your space, and tying up loose ends, you’ll create the foundation for a successful year ahead. Whether you spread these steps out over a few weeks or tackle them all in one day, the most important thing is to commit to the process. A little effort now can make a big difference in how you start the year—and how you finish it. Here’s to making the most of your fresh start!