Companies should familiarize themselves with the reporting requirements of the Corporate Transparency Act (CTA) which will impact millions of businesses starting January 1, 2024. The CTA was introduced as a part of the Anti-Money Laundering Act of 2020, and it mandates specific entities to disclose information concerning their beneficial owners, officers, and controlling persons by filing a beneficial ownership information report.
For companies registered to do business before January 1, 2024, filing of the initial report is required by January 1, 2025. Companies registered to do business on or after January 1, 2024, have a 90-day window to file an initial report. This 90-day window will be a 30-day window for companies created or registered to do business on or after January 1, 2025.
It's important to note that noncompliance with the CTA can lead to substantial statutory penalties. Oversight of the CTA is conducted by the Financial Crimes Enforcement Network (FinCEN), and these reports will be electronically submitted via a FinCEN database.
Additional information below:
Disclaimer: Kemper CPA Group LLP shall have no liability resulting from your failure to comply with CTA. Consider consulting with legal counsel if you have questions regarding the applicability of the CTA’s reporting requirements and issues surrounding the collection of relevant ownership information.