Understanding the Corporate Transparency Act (CTA): What You Need to Know
Is your business aware of a new regulation called the Corporate Transparency Act (CTA)?
The Corporate Transparency Act (CTA) is a new law aimed at preventing money laundering and other illegal activities. It requires certain businesses to report information about their “beneficial owners” to the government. This one-page guide will explain the basics of the CTA and help you determine if your business is affected.
This page will guide you through the key points of the CTA and Beneficial Ownership Information (BOI) reporting, including:
- What the CTA is and its purpose.
- Who needs to file a BOI report?
- What information needs to be reported?
- Deadlines for filing and updating reports.
Don’t wait until it’s too late!
Non-compliance with the CTA can result in hefty penalties.
Are some Companies Exempt?
A total of 23 types of entities are exempt from the reporting requirements for beneficial ownership information. These encompass publicly traded companies that meet specific criteria, non-profits, and select large operating companies.
Who Needs to File a BOI Report?
Most businesses formed after January 1, 2024, will need to report beneficial ownership information within 90 days of formation. Existing businesses have until January 1, 2025, to report. There are exceptions, though, such as publicly traded companies and certain regulated institutions. Unless exempt, most businesses created by filing documents with a Secretary of State (corporations, LLCs, etc.) need to file a BOI report.
To determine if your company falls under the category of a ‘Reporting Company’ as defined by the CTA, take a moment to review the informative flowchart below. If your company meets the criteria outlined in the “reporting company” definition and does not qualify for an exemption, it would be considered a reporting company. Our goal is to provide you with the necessary resources and guidance to navigate these regulations successfully. Feel free to reach out to us if you require any assistance or clarification on this matter.
BOI Report
CTA Advisory Services
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MBE CBOI Rep
CTA Management Representation
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Get the Help You Need
The CTA and BOI reporting can seem complex. Contact MBE CPAs today for assistance in understanding and complying with these regulations.