07/02/2024
Attention Business Owners - MORE Federal Regulations for U.S !!!
The Corporate Transparency Act !!!
Applies to all, except sole proprietors who are not registered with their state secretary of state as an LLC or similar entity.
The Corporate Transparency Act (CTA) is federal law enacted in 2021 as part of the National Defense Authorization Act. It is designed to combat money laundering, fraud, and other illegal activities by increasing transparency in corporate ownership. The goal of the CTA is to develop and maintain a national database of information regarding the individuals who, directly or indirectly, own a substantial interest in, or hold substantial control over, certain types of legal entities. Beginning in 2024, the CTA requires that all domestic and foreign reporting companies file a Beneficial Ownership Information (BOI) report with the Treasury Department’s Financial Crimes Enforcement Network (FinCEN). As a business owner, it is crucial to understand the effects of this law and the steps required to abide by its provisions.
Companies required to report are called reporting companies. There are two types:
Domestic reporting companies are corporations, limited liability companies (LLCs) and any other entities created by the filing of a document with a secretary of state or any similar office in the United States
Foreign reporting companies are entities formed under the law of a foreign country that have registered to do business in the United States by the filing of a document with a secretary of state or any similar office
Reporting companies need to file reports with FinCEN that identify two categories of individuals:
Beneficial owners of the entity
Company applicants of the entity.
Exemptions may apply to certain entities, and it is essential that a correct determination is made to ascertain your specific obligations
For reporting companies established prior to January 1, 2024, the reporting company has 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 after January 1, 2025, will have 30 calendar days to file after receiving actual or public notice that its creation or registration is effective.
In all instances, if there are any changes in beneficial ownership information, the reporting company has 30 days to inform FinCEN of such changes. Such changes include changes to the name of the company or the beneficial owner, addresses or identifying numbers.
There is no fee to file a BOI report.
I'm not a lawyer, nor accountant providing professional advise. You must figure if this new federal regulation applies to you, or not, and act accordantly . Personally, I found that registration was rather easy.
