The Corporate Transparency Act (31 U.S.C. §5336) will go into effect beginning January 1, 2024, and will establish new reporting requirements for business entities. Failure to adhere to these reporting requirements may result in penalties. This Act was enacted in 2021 to enhance corporate ownership transparency and combat illicit financial transactions. The Treasury Department’s Financial Crime Enforcement Network (FinCEN) will collect information about ownership of corporations and entities through various reporting requirements.
Beginning January 1, 2024, corporations, limited partnerships, and LLCs formed before January 1, 2024, will have one year to file beneficial ownership reports to FinCEN. Any business formed after January 1, 2024, will have 90 days to file notice. Businesses must report information about the business, its beneficial owners, and company applicants.
Failure to file before the deadline will have penalties, including fines of up to $500 per day (up to $10,000 total) and up to two years imprisonment.
After the initial report, if a change of ownership or other changes occur, updates must be reported. Failure to do so will result in the penalties mentioned above.
For more information, please reference FinCEN at www.fincen.gov/boi-faqs; you may also contact our offices to speak to one of our business attorneys to help guide you on these upcoming changes. They may also advise you on any exceptions you may qualify for and help you with any updates you need to make with your business.
If you want to learn more about The Corporate Transparency Act, don’t hesitate to contact our office at 801-322-2516.