Important Update: Corporate Transparency Act & How It Affects Your Business
Congress has introduced new beneficial ownership information reporting requirements for the Corporate Transparency Act. Navigating these changes can be challenging, so we wanted to reach out and share the key information.
The purpose of the Corporate Transparency Act is to increase transparency in company ownership structures and prevent bad actors from hiding or benefiting from ill-gotten gains through shell companies or other opaque structures. Beneficial ownership information refers to identifying information about the individuals who directly or indirectly own or control a company. The U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) is responsible for collecting this information.
Here's a timeline to better understand the reporting deadlines for your business:
- Companies created or registered before January 1, 2024: You have until January 1, 2025, to file your initial beneficial ownership information report with FinCEN.
- Companies created or registered between January 1, 2024, and January 1, 2025: You'll need to submit your initial beneficial ownership information report within 90 calendar days after receiving notice of your company's creation or registration.
- Companies created or registered on or after January 1, 2025: You will have 30 calendar days from the actual or public notice that your company's creation or registration is effective to file the initial report with FinCEN.
For more information and resources to help your business navigate these changes, please visit FinCEN's Small Business Resources.
Contact us if you have additional questions or concerns.