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.
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!
CTA Compliance is a Must—Act Today!
-Coach Jo!
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