_edited.png)
Have you heard about the Corporate Transparency Act (CTA) and wondered if it affects your business? This new law means that certain companies across the U.S. now need to file a Beneficial Ownership Information (BOI) report. Whether you're forming a new LLC or already have an established business, these rules are here to help bring more transparency to who’s behind each company—and, yes, that means a bit more reporting on your end.
Here’s a quick breakdown of what you need to know, how to comply, and what’s at stake.
So, What is the Corporate Transparency Act (CTA)?
The CTA took effect on January 1, 2024, and it's part of an effort to make company ownership more transparent. If you own a small or medium-sized business, you might need to file a BOI report with the Financial Crimes Enforcement Network (FinCEN). This report is essentially a form that identifies the people who control, own, or financially benefit from your business.
The goal? To make it harder for individuals to hide behind anonymous companies, which helps curb financial crimes like money laundering.
Does My Business Need to File a BOI Report?
The new rules apply to many privately held companies, including LLCs, corporations, and other entities that register with their state. However, larger companies, banks, charities, and certain other organizations are typically exempt. If you’re a small business owner, there’s a good chance you’ll need to comply.
If you’re unsure whether your company is required to file, it’s worth checking or asking a legal advisor. Better safe than sorry, right?
What Information Does the BOI Report Require?
When filing, you'll need to provide some key details about your business’s “beneficial owners” (those who have control or financial interest in the business). Here’s what you’ll need:
Personal Details: Full name, birth date, current address, and a valid ID (such as a passport or driver’s license) for each owner.
Formation Details: If someone else helped set up the company (like a lawyer or an agent), you might also need to provide their information, especially for entities created after January 1, 2024.
Rules on reporting company applications in your BOI Report.
And don’t forget, if there’s a change in ownership down the road, you’ll need to update this information within 30 days, after January 2025, to stay compliant.
How Do I File a BOI Report?
FinCEN provides an online portal for BOI reporting, and while it’s straightforward enough for many business owners, third-party services are available to help (often for a fee). If your ownership structure is a bit more complex or you’re unsure about the details, you might want to consult with a legal expert. Better to invest a little time and get it right the first time.
Deadlines and What Happens if You Miss Them
For businesses created before January 1, 2024, the deadline to file your initial BOI report is December 31, 2024. New businesses formed in 2024 have a 90-day window, but from January 1, 2025, onward, that time frame shortens to 30 days.
Miss a deadline or submit incorrect information, and you could be looking at daily fines of $500, up to a maximum of $10,000—plus potential criminal penalties if the violation is intentional. Ouch.
Why Does This Matter?
Think of the CTA as part of a larger movement toward transparency in business ownership. The law is designed to make it harder for people to set up “shell” companies to hide illegal activities. By reporting who’s behind your business, you’re contributing to a safer, more transparent business environment for everyone.
What Should You Do Next?
See if You’re Required to File: Double-check whether your business needs to file a BOI report under the CTA. If you’re exempt, keep records of why you qualify.
Gather the Right Info: Collect everything you need—IDs, names, and addresses of each beneficial owner.
File Before the Deadline: Make sure to file on time to avoid fines. And remember, if anything changes (like ownership), update your report within the 30-day window.
If you need help filing your BOI Report, we can help. Email us at business@geffrard.com or text us at 863-535-8184.
In Short
The Corporate Transparency Act brings new responsibilities for many U.S. businesses, but it’s also a step toward a more secure corporate landscape. Filing your BOI report doesn’t have to be stressful; just stay informed, gather the right information, and meet the deadlines.
Got questions about the BOI reporting requirements or need help with the filing? Reach out to a legal professional who can help make the process smooth and stress-free. Transparency might be the goal, but peace of mind is the real win here.
Comments