At the Vermont Bar Association Mid-Year Meeting on March 29, 2024 Sheehey partner Kevin A. Lumpkin was honored for his years of service on the Vermont Bar Association Board. Kevin served for seven years on the VBA Young Lawyers Division Board, serving as an at-large member followed by its Secretary, Treasurer, Chair-Elect, Chair, and Past Chair. Kevin organized many events and activities for young lawyers, helping to organize the annual Mid-Winter Thaw, young lawyer mixers, trivia nights, cookouts, and an evening at the Burlington paint and sip studio. For the final three years of his service on the YLD Board, Kevin served on the Vermont Bar Association Board of Managers.

VBA Board of Managers President Judith Dillon presented Kevin with a plaque at the Mid-Year Meeting honoring his dedication to the profession and his service to the Young Lawyers Division and Vermont Bar Association. Kevin will continue to serve his community on the Boards of Vermont Works for Women, where he serves as Treasurer, and Town Meeting Television, where he serves as President and Burlington Trustee. Sheehey partner Justin A. Brown now leads the Young Lawyers Division and serves on the Board of Managers.

Sheehey Furlong & Behm is pleased to continue its sponsorship of the Lake Champlain Regional Chamber of Commerce Annual Celebration. The celebration, now in its 113th year, brings together members of the Vermont business community for a night of celebration and connection. This year’s event reflects a new, more casual format allowing for more networking and connection among attendees. The festivities will be held on April 4, 2024 from 5:30 – 7:30 p.m. at the Hilton Burlington.

The Chamber, who hosts the event, strives to “power prosperity in the Lake Champlain region” through their work in the region, where they seek to promote a diverse visitor economy while celebrating the business community and nurturing emerging business talent.

Speaking about the event, Sheehey partner and Vice President of the Chamber Board, Heather Ross, stated, “The firm is proud to support the Chamber in its mission of promoting economic opportunity throughout Vermont.”

To learn more about the Chamber, you can visit their website, linked here.

A new federal reporting mandate became effective on January 1, 2024. The Corporate Transparency Act (CTA) requires “Reporting Companies” to report personal identifying information about the individuals who are “Beneficial Owners” and “Company Applicants” to the Financial Crimes Enforcement Network (FinCEN), a unit of the U.S. Department of the Treasury. FinCEN will maintain information gathered on a secure, non-public database for use by governmental authorities, certain financial institutions and financial regulators. This new requirement applies to limited liability companies, corporations, real estate holding companies, and more. All entities registered with a Secretary of State, which are not exempt from registration under the CTA, are now required to make these mandatory reports. Failure to file these reports can result in serious civil and criminal penalties.  This new federal report is in addition to, and not in place of, the annual reports customarily filed by entities with Secretary of State offices.

Generally, a Beneficial Owner is any individual who, directly or indirectly, exercises “Substantial Control” over a Reporting Company or owns or controls at least 25 percent of the Ownership Interests of a Reporting Company. Each Beneficial Owner of the Reporting Company must provide their full legal name, date of birth, current residential address, governmental identification information from a passport or driver’s license, and a copy of that identification document to FinCEN.

While some entities are exempt from the CTA beneficial ownership reporting requirements, many of the exemptions apply to companies in industries that are already heavily regulated (e.g. securities, banking, insurance), or to large companies.  Tax exempt non-profit corporations are expressly exempt from CTA beneficial ownership reporting requirements.

 

Reporting Requirements

Each Reporting Company must complete and file its initial report (BOI Report) online with FinCEN using the form that is accessible from the FinCEN website. Reporting Companies also have an ongoing obligation to timely update reporting information with FinCEN.  There is no filing fee associated with the online filing of a BOI Report.

 

Reporting Deadlines

Non-exempt entities created on or after January 1, 2024 have  90-days to file their initial BOI Report.  All non-exempt entities existing on or before December 31, 2023 have the entire 2024 calendar year to file their initial BOI Report.

 

Next Steps

Don’t wait!  All entities should review the requirements of the CTA and assess whether they are exempt from reporting. If reporting is required, Reporting Companies should file before the deadline to avoid penalties.

 

Visit FinCEN.gov  for reporting information and the latest updates on Beneficial Ownership Information reporting.

The transactional lawyers at Sheehey are prepared to assist our clients with questions about these new federal reporting obligations.