On January 1, 2024, the new Corporate Transparency Act (CTA) went into effect as part of an ongoing effort to combat money laundering and other illegal activities. The Financial Crimes Enforcement Network (FinCEN) is the Department of Treasury bureau that will enforce the CTA. The CTA requires businesses to report beneficial ownership (an individual who owns 25% or more of the business) information to FinCEN. The CTA requires all business entities in the United States (unless they qualify for an exemption) to file a report with FinCEN disclosing the beneficial owners of each business.

How does this impact you?

If your business was formed BEFORE January 1, 2024, you must file a Beneficial Owners Information Report (BOI) with FinCen by no later than January 1, 2025.

If your business was formed ON or AFTER January 1, 2024, you must file a Beneficial Owners Information Report (BOI) with FinCen within 90 days of business registration/creation. Beginning January 1, 2025, this timeline narrows to 30 days for newly-registered business entities.

Your business only needs to file the BOI report once, unless your business changes ownership, in which case a new report must be filed at the time that the business ownership changes.

What happens if I don’t file?

Each Beneficial Owner is subject to a penalty of up to $500 per day, and criminal fines of up to $10,000, and/or imprisonment for up to two years.

This blog post is for informational purposes only and does not constitute legal advice. If you have questions about your own legal rights and options, please contact the knowledgeable team at Limitless Law PLLC to schedule a strategy session with our attorney. Call 360-685-0145 or click here to learn more.