As your trusted Certified Public Accountant, we are committed to keeping you informed about significant changes in laws that may impact your business. Today, we want to enlighten you on the Corporate Transparency Act (CTA) and its significance to your company.

The Corporate Transparency Act, signed into law in 2021, represents a crucial step towards promoting transparency and preventing illicit financial activities. This law aims to enhance corporate accountability by requiring certain businesses to disclose their beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN).

Understanding The Corporate Transparency Act:

The CTA primarily targets companies that are easily susceptible to money laundering, terrorist financing, and other financial crimes. It requires these businesses to report details about their ultimate beneficial owners to the Financial Crimes Enforcement Network (FinCEN). Beneficial owners are individuals who directly or indirectly hold at least 25% ownership interest in the company, exercise substantial control, or receive substantial financial benefits from the entity.

Who Does The CTA Apply To?

The Corporate Transparency Act applies to corporations, limited liability companies (LLCs), and other similar entities. If your business falls within these categories, it’s crucial to familiarize yourself with the filing requirements to ensure compliance.

Filing Requirements Under The CTA:

1. Entities Created In 2024: A reporting company created or registered in 2024 will have 90 calendar days to file after receiving actual or public notice that its creation or registration is effective.
2. Entities Created On/After January 1, 2025: A reporting company created or registered on or after January 1, 2025, will have 30 calendar days to file after receiving actual or public notice that its creation or registration is effective.
3. Existing Entities: A reporting company created or registered to do business before January 1, 2024, will have until January 1, 2025, to file its initial BOI report
4. Updates and Changes: Companies are required to promptly report any changes in beneficial ownership information, ensuring that the provided details remain accurate and up-to-date.

How Can We Help?

As your dedicated financial partner, we are here to help keep you informed of these changes in the law and any developments that may occur as the law’s implementation continues. Our recommendation as it relates to the filing requirements, determination of eligibility, and actual filing, is to contact your attorney.

Key Takeaways:

• Be aware of the CTA’s applicability to your business structure.
• Understand the filing requirements and deadlines to ensure compliance.
• Keep beneficial ownership information up-to-date and report changes promptly.

In Conclusion…

The Corporate Transparency Act is a significant stride towards promoting transparency and accountability in the business world. If you have any questions or concerns regarding the CTA, please do not hesitate to reach out.

Thank you for entrusting us with your financial matters.