The Corporate Transparency Act (CTA) will become effective on January 1, 2024, which will require millions of small businesses to file a Beneficial Ownership Information (BOI) Report with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN). The U.S. Congress enacted CTA as an anti-money laundering law to prevent entities in the United States from financing terrorism, money laundering, tax fraud, or similar crimes.
Every corporation, LLC, or other entity including limited partnerships, LLPs, business trusts or statutory trusts, and possibly general partnerships is required to file a BOI report unless it qualifies for an exemption status. The entities that are exempt from the reporting requirements fall into 23 categories and include, for instance, publicly traded companies and other entities that file reports with the SEC, banks, credit unions, money services businesses, securities brokers and dealers, tax-exempt entities, insurance companies, state-licensed insurance producers, pooled investment vehicles, public utilities, and accounting firms.
If your company is created or registered prior to January 1, 2024, you will have until January 1, 2025, to report BOI. If your company is created or registered on or after January 1, 2024, and before January 1, 2025, you must report BOI within 90 calendar days after receiving actual or public notice that your company’s creation or registration is effective, whichever is earlier. If your company was created or registered on or after January 1, 2025, you must file BOI within 30 calendar days after receiving actual or public notice that its creation or registration is effective. Any updates or corrections to beneficial ownership information that you previously filed with FinCEN must be submitted within 30 days.
Additional information and requirements regarding filing a report are available at the FinCen Website. Our qualified corporate legal team at Wolf Wallenstein, PC can help you stay in compliance with the law and determine if the CTA may or may not affect your business.