The Corporate Transparency Act (“CTA”) was passed into law on January 1, 2021, and goes into effect on January 1, 2024. The CTA requires companies to provide information about the ownership and control of entities operating in the United States.
The goal of the CTA is to supply data to law enforcement, national security organizations and other parties to detect, prevent and prosecute terrorism, money laundering, tax evasion, and other illicit activities.
The CTA requires nearly all companies registered to do business in the United States to file a Beneficial Owner Information (“BOI”) report with the Financial Crimes Enforcement Network (FinCEN). Information required for the BOI report will include each beneficial owner’s name, date of birth, residential or business address, a unique identifying number (state identification card, driver’s license or passport number) and a scanned copy of the number identification document.
New entities formed on or after January 1, 2024, must file their BOI report within 30 days after their formation. Existing entities formed prior to January 1, 2024, will have until January 1, 2025, to file their initial BOI report.
The CTA provides for steep penalties for non-compliance. They include both civil penalties of up to $500 per day and criminal penalties in the form of fines up to $10,000 and imprisonment for willfully providing false information or failing to provide or update information.
Contact a Buckley Fine Law attorney today at 847-381-0011 or email us at firstname.lastname@example.org to discuss your company’s requirements under the CTA or to verify if your company is considered an exempt entity from its requirements.