The Corporate Transparency Act (“CTA”), which went into effect on January 1, 2024, requires many small or medium-sized businesses (SMBEs) to file with the Financial Crimes Enforcement Network (FinCEN). Your SMBE or you, as a beneficial owner, may be required to report basic information regarding your SMBE.
Key Points:
- Who Must Report: Beneficial owners are those holding 25% or more company ownership or exercising substantial control.
- Reporting Deadlines: Existing companies must complete the FinCEN report by January 1, 2025. New companies formed after January 1, 2024, should report within 90 days of state registration.
- Consequences of Non-Compliance: Failure to report can lead to significant fines and penalties.
Reporting Process:
- Visit the FinCEN BOIR filing site here.
- Follow step-by-step instructions for initial reporting and provide necessary details, including company name, federal tax ID, principal address, and beneficial owner information.
- Attach required identification documents for each beneficial owner.
- Complete the online submission process.
Please complete this reporting process by the end of 2024 to avoid penalties. If you have created a new entity in 2024, this requirement must be fulfilled within 90 days of entity formation. For further assistance with the Corporate Transparency Act reporting or questions, please reach out to our partners at Tusk Private Client Services (479) 448-8875.
