The Corporate Transparency Act (CTA) is now in effect, requiring many corporations and LLCs—including cooperative and condominium associations—to disclose their beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN).
With a compliance deadline of March 21, 2025, NYC co-op and condo boards must take proactive steps to determine their obligations, collect the necessary information, and ensure timely reporting to avoid potential penalties.
How the CTA Affects NYC Co-op & Condo Boards
Most cooperative housing corporations (co-ops) and condominium associations (condos) structured as corporations or LLCs will be required to comply with the CTA’s reporting requirements. The law is aimed at increasing corporate transparency to prevent financial crimes, but it also introduces new compliance responsibilities for residential buildings.
Who Is Required to File?
Cooperative Housing Corporations (Co-ops): Most co-ops are structured as corporations and must file a Beneficial Ownership Information (BOI) Report.
Condominium Associations (Condos): Condos registered as LLCs or corporations must also file, unless they qualify for an exemption.
Exemptions: Certain entities, including large operating companies meeting specific revenue and employee thresholds, may be exempt. However, most co-op and condo boards in NYC will likely be subject to the CTA.
Required Information for Reporting
Each affected entity must submit a BOI Report that includes:
✔ Entity Details: Legal name, current business address, and Federal Employer Identification Number (EIN).
✔ Beneficial Owners: Full legal name, date of birth, residential address, and a valid government-issued ID number.
Who Qualifies as a "Beneficial Owner"?
For co-ops and condos, a beneficial owner generally includes:
Board members who exercise substantial control over the corporation’s affairs.
Shareholders of a co-op who hold significant ownership stakes.
Individuals who influence financial or operational decisions of the corporation or association.
Key Compliance Deadlines
March 21, 2025: Filing deadline for entities formed before January 1, 2024.
Entities formed in 2024: Must file within 90 days of their registration date.
Entities formed in 2025 and beyond: Must file within 30 days of registration.
Pending Legislation: The U.S. Senate is considering an extension of the deadline to January 1, 2026, for older entities, but this has not yet been enacted.
Action Plan for NYC Co-op & Condo Boards
1. Confirm Whether Your Entity Must File
Most co-op and condo corporations in NYC will be required to file unless they qualify for an exemption.
2. Identify Beneficial Owners
Compile a list of board members and shareholders who meet the "substantial control" or ownership criteria.
3. Gather Required Documentation
Ensure you have valid identification and entity details needed for submission.
4. Submit the BOI Report
Reports must be filed electronically through FinCEN’s portal (https://fincen.gov/boi).
There is no filing fee, but failure to comply may result in significant penalties.
Consequences of Non-Compliance
Failure to submit the required information may result in:
- Civil penalties of up to $500 per day for late filings.
- Criminal penalties, including potential fines and imprisonment for willful violations.
It is imperative that NYC co-op and condo boards take immediate steps to ensure compliance and avoid unnecessary legal and financial risks.
Next Steps & How Total Management NYC Can Assist
Navigating the Corporate Transparency Act can be complex, particularly for co-op and condo boards managing residential buildings in NYC. Our team at Total Management NYC is available to provide guidance and support in ensuring compliance with the new requirements.
Stay informed, remain compliant, and ensure your co-op or condo association is prepared for the CTA’s reporting requirements. Total Management NYC is here to assist every step of the way.