The Corporate Transparency Act

The Corporate Transparency Act (CTA) went into effect on January 1, 2024 and requires certain disclosures and filings listed below and explained further in the video below:

• With a few exceptions, every LLC and corporation is now required to report information about their Beneficial Owners to the federal Financial Crimes Enforcement Network (FinCEN) known as BOI Reports.
• Beneficial Owners are defined as all individuals who own a 25% or more interest in the company, OR who exercise substantial control over the entity.
• Entities that were formed before January 1, 2024 have till the end of this year to file; entities created this year have 90 days to file; starting next year, reports must be filed within 30 days of formation.
• Any change in ownership, contact info of a Beneficial Owner, or even a change in the Beneficial Owner’s government ID, requires an updated filing.
• Failure to comply with the reporting requirements may subject you to civil penalties of $500 per day and up to two years imprisonment and/or up to $10,000 of fines in criminal penalties.
• The information reported to FinCEN is not made publicly available but can be accessed by federal and state law enforcement agencies.

We’ve been studying the law very closely and will be rolling out a new compliance service to help you with these CTA reporting requirements as well as recording a series of videos addressing FINCEN’s complex FAQs, so stay tuned for more information and let us know if you have any questions in the meantime!