Lately, there’s been a buzz in business circles about the Corporate Transparency Act (CTA) and its implications for business owners. This new legislation, effective January 1, 2024, introduces reporting requirements known as “beneficial ownership information reporting” (a BOI Filing). It’s a topic that has sparked curiosity and concern for some of our clients.
The Corporate Transparency Act (CTA)
The CTA, part of the National Defense Authorization Act for Fiscal Year 2021, mandates that certain entities disclose their beneficial ownership information (BOI). This includes details about individuals who own or control the company, affecting most LLCs, corporations, and partnerships. For entities formed in 2024, reporting must be done within 90 days of establishment. Existing entities have until January 1, 2025, to comply. In future years, new entities will have 30 days to file.
For a deeper discussion on the topic, we’ve prepared a white paper and linked it here.
Filing Requirements
Who: Companies in the U.S., including domestic and foreign entities, must comply with the CTA
What: These companies must disclose beneficial ownership information to FinCEN, including legal names, addresses, and identification details
When: The CTA took effect on January 1, 2024. Existing companies must report by January 1, 2025; companies established in 2024 have 90 days to file. Companies formed in 2025 and after have 30 days to file
Filing Guidelines
WG encourages compliance with the Corporate Transparency Act. We are not preparing BOI filings for our clients, and have the following options available to you for compliance:
Option 1: For a guided experience, we recommend BOI eFile. The cost is $224 per filing *
Option 2: If you’re comfortable filing on your own, there is a no-cost option available using the FinCEN’s filing portal
If you begin the process of filing the BOI Report and have professional questions, we encourage you to contact the attorney who drafted the entity’s formation documents.
* Securely handled by the “ Elite Cybersecurity Gurus” over at Truss. This is an affiliate link.
Conclusion
Navigating regulatory changes like the CTA can seem daunting, but staying informed and seeking appropriate professional advice will help ensure compliance and peace of mind for your business. We’re here to support you through business compliance exercises and look forward to assisting you however we can.
You can always reach us at: wgcpa.com