The Corporate Transparency Act (CTA) is a new law that aims to combat financial crimes and promote transparency in
business ownership. The primary purpose of the CTA is to prevent illicit activities by identifying the actual owners, also
known as beneficial owners of certain companies.
The CTA requires corporations and LLCs to report their beneficial ownership information (BOI) to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Treasury. The Idea is to create a centralized database accessible to law enforcement agencies and other relevant authorities for better transparency around who ultimately owns or controls certain companies.
B O I R E P O R T
A BOI Report outlines the ownership and control structure of a business, providing transparency about individuals who
ultimately own or substantially control the entity required by the CTA.
A Beneficial owner can be either:
• someone who holds substantial influence over a company
• someone who owns or controls at least 25 percent of the ownership interests
Entities that fall under the definition of a “Reporting Company,” including corporations, LLCS, and foreign entities
registered to do business in the U.S. generally need to file BOI Reports. Some entities like heavily regulated financial
institutions, tax-exempt organizations, and other that meet specific operational criteria are exempt from BOI reporting.
P E N A L T I E S
Failure to file a BOI Report on time can result in substantial civil and criminal repercussions which can include:
• Civil penalties of up to $500 per day for every day the violation continues.
• Criminal penalties for business entities providing false, fraudulent, or incomplete beneficial ownership information can face fines up to $10,000 and imprisonment up to two years.
D E A D L I N E S
The Corporate Transparency Act goes into effect January 1, 2024.
If a Reporting Company was formed BEFORE January 1, 2024, it will have until January 1, 2025 to file a BOI report to remain in compliance.
If a Reporting Company is formed AFTER January 1, 2024, it will have 90 days from the company formation to file an initial BOI report.
Any changes in Beneficial Ownership information will have a deadline of 30 days to update the initial filing with FinCEN
ABOUT CTA INTEGRITY
CTA Integrity is made up of a team of licensed attorneys and other legal professionals committed to help small businesses navigate the complexities of the Corporate Transparency Act. Our team will ensure accurate and timely submission of BOI filings and minimize the risk of errors and penalties. See if your business meets the Reporting Company critieria by going to:
www.ctaintegrity.co/elevatedtax
If you have questions, please call our office: 330-686-6666