As of January 1, 2024, most small businesses in the United States (now classified as “reporting companies”) will be required to submit reports and updates to the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) that disclose specific company and information about its beneficial owners along with identifying the person(s) submitting the reports (“company applicants” such as one of the attorneys from Roberts Law, PLLC).
Corporate Transparency Act Key Dates and Deadlines:
Companies in existence before January 1, 2024, that qualify as reporting companies under the CTA have until December 31, 2024, to file their initial BOI reports with FinCEN.
Companies formed, created, or registered after January 1, 2024, that are required to submit BOI reports will have ninety (90) calendar days from the date of receiving actual or public notice of their creation or registration becoming effective to file their initial BOI Report.
Companies formed, created, or registered after January 1, 2025, that are required to submit BOI reports will have thirty (30) calendar days from the date of receiving actual or public notice of their creation or registration becoming effective to file their initial BOI Report.
Update Requirements:
If the information for the company or its beneficial owners change, such as a change in who the beneficial owners are (such as after a sale of part or all of the business interest) or the specific information reported for any particular beneficial owner (such as a change in address or change of name due to marriage or divorce), the reporting company must file an updated report within thirty (30) calendar days of the change. When there is a change based on the death of a beneficial owner, the updated BOI report with the information identifying the new beneficial owner(s) will be due within thirty (30) calendar days of a transfer or final settlement of the estate.
Corporate Transparency Act Penalties and Fines:
The Corporate Transparency Act incorporates both steep and escalating fines ($500 per day up to $10,000 per violation). Moreover, fines can escalate to $250,000 per day if the government finds you are trying to perpetrate a fraud. Also of note, while failure to timely file a required BOI report could carry a $10,000 fine, subsequent events that would require an amendment to the missing BOI report (e.g., change in beneficial owners), could also cause additional penalties to accrue, meaning that failure to file an initial BOI report may result in total fines well in excess of $10,000.
Roberts Law, PLLC assists businesses with the issues surrounding filing for compliance with the Corporate Transparency Act. We assist reporting companies with filing their required BOI reports and updates and serve as a company applicant. To inquire about this service, please submit your contact information and company name in the contact form below.
Author: Josh Roberts
Email: josh@joshrobertslaw.com
Josh Roberts is a business and litigation attorney at Roberts Law, PLLC with over a decade of BigLaw and in-house technology experience helping businesses and business owners navigate contracts, privacy concerns, negotiations, and dispute resolutions.
Disclaimer: The information in this blog post (“post”) is provided for general informational purposes only and may not reflect the current law in your jurisdiction or the jurisdiction applicable to your issue/matter. No information contained in this post should be construed as legal advice from Roberts Law, PLLC or the individual author, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through, this post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the recipient’s state, country or other appropriate licensing jurisdiction.
