We want to inform you of a new reporting requirement under the Corporate Transparency Act (“CTA”), which may impact your business. The CTA is part of an ongoing effort by the U.S. government to combat money laundering, tax evasion, and other financial crimes. Certain entities are required to report beneficial ownership information (“BOI”) to the Financial Crimes Enforcement Network (“FinCEN”), a bureau of the U.S. Department of the Treasury.
Under the CTA, entities including corporations, limited liability companies (“LLCs”), most partnerships, certain trusts, and other similar entities, must submit a Beneficial Ownership Information Report (“BOIR”) to FinCEN.
The CTA reporting requirements took effect on January 1, 2024. Entities created or registered before this date have one year from this date to submit their initial BOIR. For those formed after January 1, 2024, reporting is required within 30 days of formation or registration. Updated data must be reported within 30 days of any change. Failure to comply with the CTA’s reporting obligations can result in severe civil and criminal penalties. These penalties include fines of up to $500 per day of non-compliance and potential criminal charges.
If you have formed an entity, whether through Hamilton Faatz, PC, another law firm, or independently, you are likely subject to these requirements. We strongly encourage you to take prompt action by contacting your tax preparer or visiting https://boiefiling.fincen.gov/ to file your report.
If you have any questions or need assistance with the filing process, please do not hesitate to contact us. We are committed to guiding you through this new compliance obligation and ensuring your business remains in good standing.
