What is the Corporate Transparency Act (CTA) for Beneficial Owners?
The Act is a federal law designed to enhance transparency in corporate structures by requiring businesses to disclose information about their beneficial owners. These are individuals who directly or indirectly own or control a significant portion of the company.
Who has to comply with the Act?
The Act applies to a wide range of business entities, including corporations, limited liability companies (LLCs), general partnerships and other business entities registered to do business in the United States. Essentially, if your business falls into one of these categories, compliance will be needed by the appropriate deadlines.
Exempt status for your Business? In navigating the intricacies of the Corporate Transparency Act, it is crucial to reach out to your accountant or attorney if you have any questions or require further guidance to determine your specific obligation under this act. There are 23 types of entities exempt from the beneficial ownership information reporting requirements. For the full list, visit the FinCEN website, then select, "Do I qualify for an exemption?".
Should my company report beneficial ownership information now?
Understanding the timeline is crucial for compliance. FinCEN launched the BOI E-Filing website for reporting beneficial ownership information (https://www.fincen.gov/boi) on January 1, 2024.
- A reporting company created or registered to do business before January 1, 2024 will have until January 1, 2025, to file its initial BOI report.
- A reporting company created or registered in 2024 will have 90 calendar days to file after receiving actual or public notice that its creation or registration is effective.
- A reporting company created or registered on or before January 1, 2025 will have 30 calendar days to file after receiving actual or public notice that its creation or registration is effective.
In navigating the intricacies of the Corporate Transparency Act, it is crucial to reach out to your accountant or your attorney if you have any questions or require further guidance. If you are ready to file, visit the FinCEN website here.