Understanding the Corporate Transparency Act: Beneficial Ownership Filing Requirements

The Corporate Transparency Act (CTA) introduced new requirements for businesses across the U.S. With the aim of curbing illicit activities like money laundering and fraud, this legislation mandates that companies report their beneficial ownership information. If you’re a business owner, it’s essential to know if these requirements apply to you and, if so, where to file and how to ensure compliance. In this post, I’ll break down the essentials and guide you through the next steps.

Who Needs to File?

The CTA requires many U.S.-based businesses to report their “beneficial owners”—individuals with significant ownership or control over the company. However, not all entities are required to file. Generally, companies that meet the following criteria should file:

1. Corporations, LLCs, and similar entities created by filing with a U.S. state or Indian Tribe.
2. Small businesses with fewer than 20 employees and less than $5 million in revenue.Exemptions: Certain organizations, like larger corporations with substantial revenue and employees, regulated entities, inactive entities, and certain non-profit organizations, are exempt. It’s essential to understand whether your business falls into one of these categories.

How to File

To comply with the CTA’s Beneficial Ownership Information (BOI) requirements, businesses must file their BOI reports with FinCEN (Financial Crimes Enforcement Network), a bureau of the U.S. Department of the Treasury. Here’s how:

1. Visit FinCEN’s Filing Portal – [Click Here]
2. Prepare Required Information: You’ll need to provide information about your business and each beneficial owner, such as full names, dates of birth, residential addresses, and identifying numbers from an acceptable identification document (e.g., passport or driver’s license).
3. Submit the Filing – Once all information is complete, submit your report. Keep a copy of your submission confirmation and details for your records.

Deadlines to Remember

• New businesses formed after January 1, 2024, must file their BOI report within 30 days of formation.
• Existing entities have until January 1, 2025, to submit their initial BOI report.

Need Help Navigating the Filing Process?

Filing under the CTA can be confusing, especially with the specific documentation requirements and deadlines. If you’re unsure whether your business is required to file, or if you need guidance on completing the process, I’m here to help. Contact me for personalized assistance to ensure your compliance with this important regulatory requirement.

Reach out today for guidance on CTA compliance!