Your Corporate Transparency Agent
The newly enacted Corporate Transparency Act (CTA) mandates existing business entities to disclose identities and personal information about Beneficial Owners to the Financial Crimes Enforcement Network (FinCEN).
Key Provisions of the CTA
There’s a lot behind the CTA, but there’s only a few key things that you should know as a business owner. That’s where we come in.
Reporting Requirements
Starting January 1, 2025, new business entities must file an initial Beneficial Ownership Information (BOI) report within 30 days of formation. The same deadline applies to any changes in Beneficial Ownership information.
A "Beneficial Owner" is an individual with substantial control over an entity or owns at least 25% of the entity's ownership interests. Certain categories of individuals are excluded from this definition.
Reporting companies must submit detailed personal information for each Beneficial Owner and Company Applicant to FinCEN, including the full legal names, birthdates, residential addresses, and identification numbers (passport or DL) of Beneficial Owners.
There are 23 exemptions to the CTA reporting requirements, mostly for larger operating companies (20+ employees and $5M in gross sales) or for entities already obligated to report Beneficial Ownership information to FinCEN.
How this Affects You
The CTA is nothing to be afraid of. With the right guidance, you’ll see that there isn’t anything to worry about for professional business owners.
More Paperwork
We know, nobody likes to have more paperwork, but failure to comply with the CTA can be serious. We’ll take care of the paperwork and reporting requirements, you just need to gather the required information about your Beneficial Owners — we’ll do the rest.
Ongoing Compliance
Going through changes in your company can be stressful enough, things like additional regulatory burdens can be easily missed. Businesses must keep their Reports up-to-date and submit additional reports if there are changes in the company (e.g., a new name or DBA, new Beneficial Owner, address change)
Enhanced Transparency
The primary goal of the CTA is to enhance transparency and prevent financial crimes. Changes are, you aren’t who they’re after. Either way, our team will take the time to prepare and file the BOI Report on your behalf, showing your committed to corporate transparency.
