Congress passed the Corporate Transparency Act (“CTA”) in 2021. The CTA took effect on January 1, 2024.

This new federal law requires certain companies (such as corporations, LLCs, LLPs, etc.) to provide information about its Beneficial Ownership (as defined in the Act) to the U.S. Treasury Financial Crimes Enforcement Network (FinCEN). The required information that must be filed includes any Beneficial Owner’s name, date of birth, residential address, and an ID number from an identification document such as a passport or driver’s license. The Beneficial Owner must also upload an image of the identification document. The required information must be filed electronically with FinCEN at https://boiefiling.fincen.gov.

FinCEN is a division of the Treasury Department. Congress passed the CTA in an effort to combat money laundering.

There are a number of exceptions to the filing requirement – most notably the “large company exception.” If a company has more than twenty (20) employees, operates in the U.S., and filed a tax return the prior year demonstrating more than $5 million in gross receipts or sales, they are exempt from complying with the CTA.

The deadline for filing the required information with FinCEN for companies existing prior to 2024 is December 31, 2024. Companies formed after January 1, 2024 have ninety (90) days to comply with the CTA. There are significant penalties for failure to file by the deadline.

The attorneys at May Oberfell Lorber are well versed in the Corporate Transparency Act and are happy to assist companies who must satisfy this government requirement.

This article is for information purposes only and is not intended to constitute legal advice.

Posted in Corporate & Business

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