Business Owner Obligations in 2024: Navigating the Corporate Transparency Act
October 2, 2024
You may heard recently about “The Corporate Transparency Act” or “CTA”. We are reaching out to let you know that as a business owner you have the responsibility to comply with this act by December 31, 2024, or face penalties.
The Corporate Transparency Act 2021 (“CTA”) was enacted to increase transparency in business ownership. The CTA imposes obligations on “Reporting Companies” to disclose certain information to the Financial Crimes Enforcement Network (“FinCEN”) of the U.S. Department of the Treasury. With a few exceptions, a “Reporting Company” is any entity that is created by incorporating with the state. The law came into effect in January 2024 and requires that all existing and new entities report their Beneficial Ownership Information (“BOI”).
The “Beneficial Owners” are people who have control, make decisions for the company or who benefit from the entity.
Entities incorporated before December 31, 2023, have until December 31, 2024, to file.
Any Reporting Company formed between January 1, 2024, and December 31, 2024, must file within 90 days of formation. After January 1, 2025, every Reporting Company will have 30 days to file upon creation. Regardless of when an entity was formed, changes to its Beneficial Ownership must be reported within 30 days.
The consequences of failing to meet obligations under the CTA may include large daily fines and prison time.
As an accounting firm, OMNI 360Tax, Consulting & Accounting is not permitted to file these reports as it is considered legal advice. You can either choose to log onto the FINCEN site and file the BOI forms for yourself or you can engage OMNI Legacy Law to complete the filing for you. OMNI Legacy Law is a law firm within OMNI 360 Advisors, LLC. The fee starts at $500 for a single entity owned by 2 individuals. For firms with more owners there is a $75 charge for each additional owner. Clients with multiple reporting companies will be charged at an hourly rate.
If you have questions or would like the law firm OMNI Legacy Law to file the CTA on our behalf, please contact us as soon as possible. We will connect you with our onboarding specialist who will outline the process and get you started.
Check out our latest blog about the Corporate Transparency Act.
This video will help you with your filing: 5 Minute DEMO – How to file the CTA
