ATTENTION LLC & CORPORATION OWNERS:
YOU MUST COMPLY WITH THE NEW REQUIREMENTS IMPOSED BY CONGRESS BEFORE THE END OF THE YEAR OR BE SUBJECT TO SIGNIFICANT PENTALTIES.
The enactment of the Corporate Transparency Act (CTA) enacted in 2022 introduces reporting requirements for corporations and limited liability companies in the United States commencing January 1, 2024, aimed at enhancing transparency to combat illicit financial activities.
Key Aspects of the Corporate Transparency Act:
- Reporting Requirements: The CTA requires that before January 1, 2025, most legal entities report beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN). This includes providing details of individuals who own or control the entity and details concerning the entity. See https://www.fincen.gov/boi-faqs#B_1 for Beneficial Ownership Interest Reporting information.
- Entities Affected: The Act applies to corporations, LLCs, and other similar entities formed or registered to do business in the U.S.
- Exemptions: Certain entities are exempt, such as publicly traded companies or entities already subject to specific regulatory oversight, e.g., banks. See https://www.fincen.gov/boi-faqs#C_2 for more information on companies exempted from reporting.
- it is most likely that you will be required to comply with these new requirements. However, the exact obligations will depend on your specific business circumstances. See https://www.fincen.gov/boi-faqs#M_3 on how to file.
- Failure to comply with these requirements can result in significant fines and penalties.
Our Recommendation:
If you have not filed already, we strongly advise reviewing your current structure and operations to determine your compliance obligations under the CTA. Failure to comply can result in substantial penalties, including fines and imprisonment for willful non-compliance.
Next Steps:
- Assessment: Review the requirements for your company following the guidelines on the FinCEN website.
- File or BOI ID: Have each owner of your organization create a BOI ID, As the filing require personal information and personal identifiers from all those classified as having a beneficial ownership interest that must be updated on a regular basis. ID information can then be updated by each owner and the owner’s BOI ID number used in the entity filing rather than the owner supplying information and updates to the Entity for filing.
- File BOI entity Reporting form online at https://www.fincen.gov/boi.
If you are unable to handle this yourself, please feel free to reach out with any questions or concerns or guidance as required. If you require our services, we will provide a separate engagement letter for our services. They are not included in any other engagement agreements we have with you and are not our responsibility whether or not we are your authorized agent.
We are here to assist you through this process and ensure that your business continues to operate smoothly and in full compliance with federal regulations. Please contact us if you would like further information or want to retain us to handle this for you.
