Have you heard of the Corporate Transparency Act, or CTA?
Highlights…
- The regulation by the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) requires entities created or registered by state offices to disclose certain details to FinCEN, starting January 1, 2024.
- Beneficial owners, those with substantial control or at least 25% ownership, must be reported.
- Existing entities must report specific information by January 1, 2025, while new entities formed in 2024 need to report within 90 days of formation.
That information required includes the full legal name, date of birth, residential street address, and a unique identifying number from a passport, driver’s license, or other governmental documentation, and an image of that document.
Not reporting accurate details or providing false information for the Corporate Transparency Act may result in penalties of $500 per day.
You can learn more and download the forms once available at https://www.fincen.gov/boi
Have questions? Here’s a direct link to Treasury’s FAQ page: https://www.fincen.gov/boi-faqs
While you have all year to comply, assuming you’re affected, I’d recommend putting it on your calendar to take care of before summer rolls around.
*Photo courtesy of the https://www.fincen.gov website.