Corporate Transparency Act (CTA) Compliance
This page provides critical information about the Corporate Transparency Act (CTA) and the new Beneficial Ownership Information (BOI) registry, which requires certain businesses in the United States to report ownership and control details to the federal government.
UPDATED FEDERAL COURT RULING (December 24, 2024)
Important Update for Reporting Companies
The Fifth Circuit Court of Appeals has granted a Justice Department motion to lift a previous injunction, leading to an important update from FinCEN. The initial reporting deadline for most reporting companies has been extended to January 13, 2025.
We strongly recommend using the direct filing method to submit your initial report accurately and on time. You can submit your initial report here: https://boiefiling.fincen.gov/
If you need assistance navigating this process, our team is here to help. Contact us today for expert guidance.
Phone: 419-868-1040
Email: brittani@goodmantaxservices.com
Corporate Transparency Act (CTA)
What is the Corporate Transparency Act (CTA)?
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The CTA was enacted in 2021 to combat illicit financial activities such as money laundering, drug trafficking, terrorism, and corruption. It requires reporting companies to disclose information about individuals who own or control the entity. This initiative strengthens national and economic security while creating a level playing field for small businesses.
Who Needs To File?
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Most companies doing business in the U.S. are required to report. While there are exemptions, our clients are unlikely to qualify for these exemptions.
Key Deadlines
Existing Companies: Entities formed or registered before January 1, 2024, must file by January 1, 2025.
Newly Created or Registered Companies: Entities formed or registered in 2024 must file within 90 calendar days of their creation or registration becoming effective.
What is Required?
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To complete your BOI report, gather the following information:
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Entity Details: Name, state of formation, and business address.
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Tax Identification: EIN number.
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Beneficial Owner Identification: A copy of the front of each beneficial owner's driver’s license.
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A beneficial owner is someone who:
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Directly or indirectly owns or controls 25% or more of the company’s ownership interests, or
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Exercises substantial control over the company.
How to File?
Filing is simple, secure, and free. Follow these steps:
Visit FinCEN’s BOI Filing Portal.
Select “File an Online BOIR.”
Follow the guided prompts, using the “Need Help” buttons for additional instructions.
Important: Be cautious of third-party solicitations and misleading websites. Always use the official FinCEN link provided above
Security of Your Information
Reports are securely maintained by the Department of the Treasury’s financial crimes wing. Only state and federal law enforcement can access this information, and nothing becomes public.
Compliance is Crucial
Failure to comply with the CTA filing requirements carries steep penalties:
$591 per day for noncompliance.
Criminal penalties of up to $10,000 or 2 years imprisonment for intentional violations.
Additionally, updates or corrections must be submitted within 30 days to avoid penalties.
Why it Matters
A centralized BOI database closes financial loopholes that allow illicit activities and strengthens the security of law-abiding businesses like yours. Filing is a one-time process unless updates are necessary, making compliance straightforward for most business owners.
We are Here to Help!
While we do not provide preparation services for this reporting requirement, we encourage you to:
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File your report directly through the FinCEN Portal.
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Contact your legal counsel for further assistance.
Once you’ve completed your BOIR filing, please:
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Submit a copy to our office for our records.
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Keep a copy with your important business documents.
Deadline to File
December 31, 2024
Don’t wait—ensure your compliance today to avoid penalties!
Disclaimer
This information is for general guidance only and does not constitute legal advice. For specific concerns, please consult your legal counsel.
If you have any questions or need further clarification, feel free to contact us directly. Let’s work together to keep your business compliant and secure!
