Introduction

The Corporate Transparency Act (CTA) is a game-changer for businesses, requiring increased disclosure of ownership information to prevent fraud and financial crimes. Compliance is no longer optional, and failure to meet the requirements could lead to penalties.

What is the Corporate Transparency Act?

The CTA, effective in January 2024, mandates that businesses disclose their Beneficial Ownership Information (BOI) to the Financial Crimes Enforcement Network (FinCEN). This legislation aims to curb money laundering, tax evasion, and financial fraud by increasing transparency.

Who Needs to Comply?

Most corporations, LLCs, and similar entities must report their beneficial owners. Exceptions include publicly traded companies, financial institutions, and certain large operating businesses.

Key Compliance Requirements

• Identify Beneficial Owners: Any individual with at least 25% ownership or significant control.
• Submit BOI Reports to FinCEN: New businesses must report upon formation, while existing businesses must comply by January 1, 2025.
• Update Information Promptly: Changes in ownership or control must be reported within 30 days.

Penalties for Non-Compliance

Failure to comply can lead to civil fines of up to $500 per day and criminal penalties of up to $10,000 or imprisonment.

How Apache Legal PLLC Can Help

Our corporate attorneys guide businesses through CTA compliance, reporting obligations, and risk mitigation strategies, ensuring full legal adherence.

Conclusion

With the CTA’s enforcement in full swing, businesses must act now. Contact Apache Legal PLLC to ensure compliance and avoid costly penalties.