The Corporate Transparency Act
For companies formed before January 1, 2024, there are less than 6 months left to file your initial beneficial owner report under the Corporate Transparency Act.
Your business may have to meet new reporting requirements that took effect on January 1, 2024. Under the Corporate Transparency Act (CTA), enacted in 2021, certain companies will be required to provide information related to their “beneficial owners” — the individuals who ultimately own or control the company — to the Financial Crimes Enforcement Network (FinCEN). Failure to do so may result in civil or criminal penalties or both.
A U.S. district court has held the CTA unconstitutional but limited its permanent injunction against enforcement solely to the plaintiffs in the case. The government has appealed and indicated that compliance with the FinCEN BOI rules remains for individuals and entities other than the plaintiffs until further notice.
Filing Deadlines
The deadline to comply depends on the entity’s date of formation:
- Reporting companies created or registered prior to January 1, 2024, have until January 1, 2025.
- Those created or registered on or after January 1, 2024, but before January 1, 2025, will have 90 days upon receipt of their creation or registration documents to file their initial reports.
- Those created or registered on or after January 1, 2025, will have 30 days upon receipt of their creation or registration documents to file their initial reports.
More Information
For more detailed information on the CTA and BOI reporting requirements:
Taking the next steps
What should your company do now to ensure compliance? Evaluate your current situation. If you determine that your business must meet these obligations, collect the required information needed to make the submission. If you have any questions or need additional guidance, please consult your legal counsel.
