What is the Corporate Transparency Act?
Staring January 1, 2024, a majority of businesses will be required to report information about the beneficial owners of the company
- Businesses will need to report information regarding information about the business’ owners, officers, and controlling persons.
Who has to report?
- Any corporation or limited liability company LLC, or entity otherwise authorized by a secretary of state to do business
- Entity formed under the law of a foreign country and registered to do business in the United States.
When is this report due?
- For companies formed prior to Jan 1, 2024: Jan 1, 2025
- For new companies formed in 2024: 90 days after formation
- For new companies formed in 2025: 30 days after formation
Why do businesses have to do this report?
- The CTA was created to prevent illicit activities including money laundering and terrorist financing.
Failure to File Penalties:
Civil: penalties are up to $500 per day, or
Criminal: up to 2 years of jail and/or a fine up to $10,000
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