The Corporate Transparency Act, or CTA, goes into effect on January 1st, 2024. It requires “beneficial owners” of “new” (formed on 1/1/2024 or after) “small businesses” (less than 500 employees and US-revenue under $5M) to report the personal information to the Financial Crimes Enforcement Division of the Department of Treasury, or FinCEN, within 90 days of forming a new company.
Beneficial owners are identified by the CTA as individuals who exercise substantial control over a registered entity (i.e., LLC or Corporation), directly or indirectly own 25% or more of the registered entity, or receives substantial economic benefits from the assets of the registered entity.
All small businesses, not just new ones, will need to report by January 1st, 2025.
The law applies to all new corporations and LLCs formed after the effective date, as well as to existing companies. There will be some exceptions, however, including publicly traded companies, certain financial institutions, and government agencies.
Everyone is required to update any changing information, when it occurs, within 30 days. This includes things such as updating your residential address should you move, or your name should you marry and change your name. This also includes, of course, changes to ownership information of the company, address changes should the company move or expand into other states, and more.
With the possibility of daily fines and jail time, no one wants to find out they have missed deadlines or misunderstood the intent of the law.
Law 4 Small Business is here to help!
Are you unsure if your business needs to report Beneficial Ownership Information (BOI) under the Corporate Transparency Act (CTA)? Visit our website at https://www.l4sb.com/services/initial-beneficial-ownership-information-boi-report/ to access our free, anonymous expert system to learn if your business and owners need to report to FinCEN.
Want even more help? Our Law Firm will submit your BOI report as required by FinCEN and the Corporate Transparency Act for only $49.99, plus $9.99 for each Beneficial Owner.
Want to learn more about the CTA, Beneficial Owners, and FinCEN? Access our blog here.
Want to talk to an attorney? Consult with licensed attorney trained on FinCEN’s BOI reporting requirements under the Corporate Transparency Act and get all of your questions answered today!