By: Elizabeth Jane Brooks, LMT, BCTMB

Recently, there has been some concern regarding whether or not non-participating spouses should be included when reporting at least 25% ownership of a business entity for FinCEN. Since WA State is a community property state, the assets acquired during the course of a marriage are generally acknowledged to be equally owned by both spouses. In light of FinCEN reporting, it is then likely that a spouse, even if they have no participation in a business entity, will need to report being a beneficial owner in the business entity. FinCEN has not yet specifically stated this to be the case, but it is implied and clarity is likely coming in the near future. Knowing this, you may want to include community property ownership as additional beneficial owners.

Full FinCEN Reporting article link from April 21, 2024

https://www.mywsmta.org/CPP-News/13346226