What is the CTA?
The Corporate Transparency Act (CTA), effective January 1, 2024, mandates that certain small businesses report their beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN). This law aims to enhance transparency and combat financial crimes, such as money laundering and tax evasion.[1]
Who Must File?
If your business meets the following criteria, you likely need to file:
Operating in the U.S.
Fewer than 20 employees.
Less than $5 million in annual gross receipts.
Not exempt under the CTA’s specific provisions.
Key Deadlines
Existing Entities (formed before Jan. 1, 2024): File by January 1, 2025.
New Entities (formed on or after Jan. 1, 2024): File within 30 days of formation or registration.
***UPDATE: December 23, 2024, Beneficial Ownership Information Reporting Requirements Now in Effect, with Deadline Extensions***
In light of a December 23, 2024, federal Court of Appeals decision, reporting companies are once again required to file beneficial ownership information with FinCEN. However, because the Department of the Treasury recognizes that reporting companies may need additional time to comply given the period when the preliminary injunction had been in effect, we have extended the reporting deadlines.
Reporting companies that were created or registered prior to January 1, 2024, have until January 13, 2025, to file their initial beneficial ownership information reports with FinCEN. (These companies would otherwise have been required to report by January 1, 2025.)
Reporting companies created or registered in the United States on or after September 4, 2024, that had a filing deadline between December 3, 2024, and December 23, 2024 have until January 13, 2025 to file their initial beneficial ownership information reports with FinCEN.
Please visit https://www.fincen.gov/boi to read in full detail.
What Information Must You Provide?
For each beneficial owner (anyone owning or controlling 25%+ of the business), businesses must report:
Full legal name.
Date of birth.
Residential address.
Unique identifying number (from a driver’s license, passport, etc.).
Why Filing is Important
Non-compliance with the CTA can lead to severe penalties, including:
Civil Fines: Up to $500 per day of non-compliance.
Criminal Penalties: Fines of up to $10,000 and imprisonment for up to 2 years.
How to File
Visit FinCEN’s online Beneficial Ownership Secure Filing System (BOSS) https://www.fincen.gov/boi.
Gather the required information and documents.
Submit your report securely online.
Stay Compliant and Protect Your Business
The CTA isn’t just a regulatory hurdle—it’s a step towards creating a fairer business environment. Don’t risk the financial and reputational damage of non-compliance.
Need Help?
Visit https://www.fincen.gov/boi for a comprehensive guide and resources!
Time is of the essence!
-Coach Jo!
コメント