New Requirements Under the Corporate Transparency Act
What does your business need to know about the new requirements under the Corporate Transparency Act (CTA)? In addition to learning about the new requirements and how they will impact your business, it is also important to know that the experienced West Palm Beach business lawyers at Kelley Kaplan & Eller, PLLC are here to assist you with required steps and processes related to the CTA. We want to ensure that you are aware of the new reporting requirements, and we also want to make sure you know that we can file your reports for you. Given that the CTA recently took effect and has new requirements, it is also a good time for us to work with you to update your corporate documents. In the meantime, we can tell you more about what you should know concerning the CTA.
Effective Date of January 1, 2024
It is essential for your business to be aware that the Corporate Transparency Act took effect on January 1, 2024. As such, all new requirements in the CTA must now be met.
Small Business Owners Should Expect to Be Impacted
While many types of reporting requirements only impact larger corporations and other types of businesses, it is critical for business owners in South Florida to know that many small business owners will also be required to adhere to the new reporting requirements in the CTA. Your business is likely to be impacted even if you have no employees. To be sure, the CTA was designed specifically to target small businesses, so you should be aware that the new reporting requirements likely apply to your business.
Reporting Beneficial Owners
What are the new reporting requirements, and what does your business need to report now that the CTA is in effect? In short, the CTA now requires most companies to file reports about beneficial owners. This reporting must be submitted to the US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN). The report that must be submitted is the Beneficial Ownership Information (BOI) Report. The purpose of this newly required report is to increase transparency about business ownership in order to put an end to certain types of financial crimes, including money laundering and tax fraud.
Who Must Report?
Which businesses are required to submit a BOI Report to FinCEN? Your business must report if it is a corporation, LLC, or another type of business that was created through the “filing of a document with a secretary of state.”
The CTA does list a number of exemptions, but you should not anticipate that these exemptions will apply to your business. Exemptions include, for example, banks and credit unions, insurance producers, money services businesses, and venture capital fund advisers.
Timing for Filing a Report
How much time do businesses have to comply with the new CTA requirements? If your business is required to report and was created before January 1, 2024, you will have one year from the date the CTA became effective to file your initial BOI Report — in other words, you will have until January 1, 2025. For companies created on or after January 1, 2024 but before the start of 2025, you will have 90 days to file. Companies created on or after January 1, 2025 will have 30 days to file.
Contact a West Palm Beach Business Law Attorney Today
If you believe you are required to file a BOI Report or need to update corporate documents, you should get in touch with one of the experienced West Palm Beach business lawyers at Kelley Kaplan & Eller, PLLC today to get started.
Sources:
uschamber.com/co/start/strategy/small-business-corporate-transparency-act
fincen.gov/boi
