January 1, 2025 Filing Deadline Coming Soon!

Overview of the CTA Requirements and Compliance Obligations

The CTA, which became effective January 1, 2024, introduces extensive federal disclosure obligations for all businesses that do not qualify for an exemption, regardless of when formed. These new reporting requirements are stringent and can trigger multiple filings in a single calendar year exposing noncomplying individuals and entities to both civil and criminal penalties. Pursuant to the CTA, the Financial Crimes Enforcement Network (“FinCEN”) is authorized to collect beneficial ownership information (“BOI”) with respect to business entities (referred to as “Reporting Companies”) formed or registered to do business in the U.S. and disclose such BOI to various federal and state agencies (including the IRS).

In this regard, any Reporting Company that does not qualify for an exemption from reporting must comply with these reporting obligations irrespective of whether it existed before or after January 1, 2024. Penalties for noncompliance include fines of up to $10,000 – making early compliance essential for avoiding these penalties.

Upcoming Reporting Deadlines

• Reporting Companies formed or registered before January 1, 2024, must file their BOI Reports (“BOIRs”) by January 1, 2025.

• Reporting Companies formed or registered during calendar year 2024 must file initial BOIRs within 90 calendar days after receiving actual or public notice that its creation or registration is effective.

• Reporting Companies formed or registered on or after January 1, 2025, must file initial BOIRs within 30 calendar days after receiving actual or public notice that its creation or registration is effective.

• All Reporting Companies (regardless of when formed) are required to file “updated reports” within 30 days of any changes to information previously reported to FinCEN on any BOIR (e.g., change in ownership, address, or company name). 

Next Steps

If you have not submitted a CTA form yet, you should address your possible filing requirements now.

Please reach out to us if you have questions about your CTA compliance.

If you would like a JMBM attorney to contact you about how the Corporate Transparency Act may impact you, please contact your attorney or click here to submit your information.