Corporate Transparency Act 2024

Your Business Could Be Fined $500 Daily If You Don't Do This...

DJ

DJ

January 1st, 2024 at 4:34 PM

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Hey there! So, in simple terms, the Corporate Transparency Act (CTA) is like a set of rules that started in 2021 to make sure that companies and businesses tell everyone who really owns them and how they operate. The goal is to stop bad stuff like laundering, hiding money, cheating on taxes, and doing other sneaky things.

Now, this law mainly affects smaller businesses, especially those without any employees. It wants these businesses to share information about who owns them. It's a bit like saying, "Hey, if you're doing business here, we want to know who's in charge."

Two types of companies need to share this info: 

  • Domestic ones (which are based in the U.S.)  
  • Foreign ones (which come from other countries but do business here). 

There are some exceptions, though, like banks and government groups.

The law also talks about "beneficial owners," which are basically the big bosses or important people who control a company. It says they need to share details like their name, birthdate, address, and a special number from an official document. This helps make sure everyone knows who's really in charge.

When someone starts a company, they're called the "company applicant." But don't worry, the law doesn't ask for much info about them. It's more interested in the big bosses and how the company is run.

So, that's the deal with the Corporate Transparency Act. It's like a set of rules making sure businesses are open about who's really running the show, and if you don't comply you may be fined $500 daily or get prison time.

When do I need to report my company’s beneficial ownership information to FinCEN?

  • A reporting company created or registered to do business before January 1, 2024, will have until January 1, 2025 to file its initial beneficial ownership information report.

  • A reporting company created or registered on or after January 1, 2024, and before January 1, 2025, will have 90 calendar days after receiving notice of the company’s creation or registration to file its initial BOI report. This 90-calendar day deadline runs from the time the company receives actual notice that its creation or registration is effective, or after a secretary of state or similar office first provides public notice of its creation or registration, whichever is earlier.

  • Reporting companies created or registered on or after January 1, 2025, will have 30 calendar days from actual or public notice that the company’s creation or registration is effective to file their initial BOI reports …

WATCH VIDEO TO LEARN MORE ABOUT THE TRANSPARENCY ACT

WATCH THIS VIDEO TO LEARN HOW TO FILE YOUR BOI REPORT

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