General Information
On January 1, 2024, the Corporate Transparency Act (CTA) took effect. This new federal law is designed to combat money laundering, tax fraud, terrorism financing, and generally to enhance transparency about the ownership of companies operating in the United States. While that was the rationale for the law, it applies broadly to all U.S. companies without regard to industry, profitability, or whether it is a parent or subsidiary to another company (with very few exceptions).
Purpose/Necessity
The CTA requires that all newly formed and already existing U.S. corporations, LLCs, etc. file “Beneficial Ownership Information” (BOI) reports in which the individuals who own at least 25% of the company and/or who “substantially controls” the company (ex: the company’s CEO) are identified. This information is to be provided to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN). The data will not be publicly accessible but will instead reside in a confidential database kept by FinCEN. The deadline for submission of such information is:
- If the company was formed before January 1, 2024 – by January 1, 2025
- If the company was formed on or after January 1, 2024 – 90 calendar days after the company’s formation date
- If the company ownership information changes (ex: ownership change, new CEO, etc.) – 30 calendar days after the change occurs
Frequently Asked Questions
- Does my company have to file a BOI?
- While certain legal entities are exempt from the requirement to file a BOI report, the vast majority of legal entities are required to do so. Generally speaking, for-profit legal entities (including wholly owned subsidiaries whose parent entity must file a BOI report) are considered “reporting companies” which are required to comply with the Corporate Transparency Act by filing a BOI report in the required timeframe. Exempt entities include banks, credit unions, insurance companies, public utility companies, and tax-exempt entities (ex: 501c3 non-profit organizations).
- Is there a penalty for not filing the BOI report by the deadline?
- According to the Corporate Transparency Act, a “civil penalty” of up to $500 may be assessed for each day that the required filing is not submitted. Furthermore, individuals who prepare and submit false BOI reports may be held personally liable for false reporting.
Legal Services Offered and Cost
File Beneficial Ownership Information (BOI) Report with FinCEN
Legal fees: $150 flat fee
This includes:
- Review of client’s information to ensure legal requirements are fulfilled
- Submission of information to FinCEN
- Email confirmation of submission of BOI Report with PDF confirmation of successful receipt by FinCEN
If you are ready to get started, please CLICK HERE to enter basic information using our secure online form.