The Corporate Transparency Act (CTA) was enacted in 2021 with an effort to combat criminal activity, such as money laundering, tax fraud, and financing for terrorism.
Starting this year, small businesses that meet certain criteria are required to submit a Beneficial Ownership Information Report (BOI) to the US Department of Treasury’s Financial Crime’s Enforcement Network (FinCEN). This includes entities that are registered with the State, such as LLCs and small corporations.
Note: Sole proprietors and general partnerships are not required to file the BOI Report as they are not registered with a State.
Filing deadline:
- For businesses formed prior to this year, the deadline for filing is January 1, 2025.
- Any domestic reporting company formed in 2024 must file a BOI report within 90 calendar days of either receiving actual notice that its formation has become effective; or when the secretary of state, or similar office, provides public notice that the entity has been formed, whichever occurs first.
- Those businesses formed in 2025+ must file within 30 days.
Penalty for late filing:
- Failure to file will result in a penalty of $500 per day, up to $10,000, and up to two years in prison.
How to file:
- If your business requires this filing, we encourage you to do so as soon as possible.
- You can file electronically through FinCEN’s Beneficiary Ownership Secure System (BOSS), which can be accessed here: https://boiefiling.fincen.gov/
- Your attorney and certain organizations can file for you for a fee.
A summary of the requested information is below.
- Company Information: Legal name, Tax ID number, State and or Country of formation, and company address
- Beneficial Owner Information: Full name, date of birth, home address, and picture of State ID or passport
When an amended or new report is required:
- If you make a change within the structure or ownership of your business, you must file a new BOI report within 30 days of the change.
- A change in the owner’s name, address, or registration of a new dba requires re-filing within 30 days. This includes changes to the State ID or passport used to file.
- If an error or omission was made in the original filing, you must file an amended report within 30 days of becoming aware of the inaccuracy, or 90 days from the date of the initial filing to avoid penalty.
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The material has been gathered from sources believed to be reliable, however Bedel Financial Consulting, Inc. cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. To determine which investments or planning strategies may be appropriate for you, consult your financial advisor or other industry professional prior to investing or implementing a planning strategy. This article is not intended to provide investment, tax or legal advice, and nothing contained in these materials should be taken as such. Investment Advisory services are offered through Bedel Financial Consulting, Inc. Advisory services are only offered where Bedel Financial Consulting, Inc. and its representatives are properly licensed or exempt from licensure. No advice may be rendered unless a client agreement is in place.