Millions of small businesses and corporate entities around the country are required to report beneficial ownership information (“BOI”) under the federal Corporate Transparency Act. The CTA requires that entities report certain information about the individuals who own or control the entities to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”). The law’s requirements went into effect on January 1, 2024.
- Entities created before January 1, 2024, have until January 1, 2025, to file initial reports.
- Entities formed in 2024 have 90 days to file after formation.
- After January 1, 2025, newly created entities will have 30 days after formation to file.
Failure to provide BOI information to FinCEN can result in significant penalties to the individual required to file. Currently, the civil penalty amount, adjusted for inflation is $591 per day the violation continues. Criminal penalties of up to $10,000 can also be assessed.
If you have questions regarding CTA reporting obligations and how to ensure compliance with FinCen regulations, contact the HDRB&B attorney with whom you normally work, or call us today at 201.441.9056.