The Corporate Transparency Act (CTA) is a new law that requires certain businesses to report information about their beneficial owners to the government. This is designed to help fight money laundering and other crimes.
Who needs to report?
- Most new businesses formed after January 1, 2024 need to report within 90 days.
- Existing businesses need to report by January 1, 2025.
- There are some exceptions, like publicly traded companies and certain already regulated businesses.
What information needs to be reported?
- Information about the people who really own or control the business (beneficial owners). This includes their name, address, and date of birth.
What happens if I don’t report?
- There can be civil penalties, criminal fines, and even jail time.
What should I do?
- Talk to a lawyer to see if the CTA applies to your business and who your beneficial owners are.
You can find more information from FinCEN at https://www.fincen.gov/boi-faqs.
