The deadline to file your beneficial ownership information (BOI) report is approaching fast! With only six months left, it’s crucial for companies to ensure compliance and meet their obligations under this significant piece of legislation to avoid any penalties—including fines and imprisonment.
In 2021, the Corporate Transparency Act (CTA) was passed by Congress. One of its key provisions is the requirement for corporations, limited liability companies (LLCs), and other similar business entities to report information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN) of the United States Department of Treasury.
Who exactly needs to file these reports?
The CTA applies to businesses that are formed or registered to do business in the United States, including corporations, LLCs, and other similar entities. Businesses formed or registered before January 1, 2024, have until December 31, 2024, to submit their initial BOI report. If your business is formed on or after January 1, 2024, you have 90 days from formation to file the BOI report.
Are small businesses exempt from filing?
Unlike most federal laws, the exemptions under the CTA are for large businesses. So, if you are a small business owner, it is very likely that your business has to file a BOI report.
Why is it important to comply with the CTA’s BOI reporting requirements?
Compliance with the CTA is a legal obligation that businesses must fulfill. Failure to comply with the reporting requirements can result in significant penalties and fines, and even the possibility of prison.
What steps should businesses take to ensure compliance with the CTA?
1. Understand the Requirements: Determine whether your business is exempt.
2. Identify Beneficial Owners: Identify and gather information of the beneficial owners. Beneficial owners are individuals who directly or indirectly own 25% or more of the business OR who directly or indirectly control the business.
3. Plan Ahead: Don’t wait until the last minute to prepare and submit your BOI reports.
If you are not sure how the CTA affects you and your business, or if you need help with any other business needs, please contact us at 305.222-7282 or Info@Ser-Associates.com.
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