The Corporate Transparency Act

 

What is the Corporate Transparency Act?

Congress passed the Corporate Transparency Act (“CTA”) on January 1, 2021, extending current anti-money laundering measures.

The goal of the CTA is to assist law enforcement in combating and preventing money laundering, tax fraud, corruption, terrorist funding, and other unlawful activities by granting access to beneficial ownership information during investigations for companies suspected of being used for criminal purposes.

The New Updated Rule Starting January 1, 2024

Every Reporting Company will be required to submit beneficial ownership information reports (also known as “BOI Reports”) to the Financial Crimes Enforcement Network (FinCEN) of the Department of Treasury. These reports will contain information on the corporate entity, its Beneficial Owners, and its Company Applicants.

When Do I Need to File a Report?

  • The submission period for reports will open on January 1, 2024. Reporting companies that were established or registered to conduct business prior to January 1, 2024, will be granted an extension to file their first BOI report, which will expire on January 1, 2025.
  • Reporting companies that were formed or registered before January 1, 2025, but on or after January 1, 2024, have 90 calendar days to file their first BOI report following the receipt of official notice from the public or actual notice that their company’s creation or registration is effective.
  • This 90-day period begins on the day the company receives actual notice that its creation or registration is effective, or, if earlier, the day a secretary of state or comparable office first notifies the public of its creation or registration.
  • Reporting companies formed or registered on or after January 1, 2025, will be able to file their initial BOI reports 30 calendar days after receiving actual or public notice that their creation or registration is effective.

 

In the guide below, we have created a 5-part overview in reference to https://www.fincen.gov/sites/default/files/shared/BOI_Small_Compliance_Guide.v1.1-FINAL.pdf.

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The Corporate Transparency Act Guide

Part 1: Reporting Companies Information

  • Is my company a Reporting Company?
  • What if my company fails to report BOI on time? What happens?

Part 2: Beneficial Owners

  • Who is a Beneficial Owner?
  • Substantial Control

Part 3: Company Interests

  • Is my company required to report its company applicants?

Part 4: Contents of an Initial Report 

  • What contents do I need to provide?

Part 5: How Reports are Submitted / Changes

  • How do I submit a report and what should I do if I need to make changes?

 


 

Overall, the Corporate Transparency Act (CTA) is effective January 1st, 2024. It is extremely important to adhere to the government laws and regulations.

For more information on the CTA or assistance in preparing for your filings, please contact Asset Strategy today.

 

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Because investor situations and objectives vary this information is not intended to indicate suitability for any individual investor.

Advisory Services are offered through Asset Strategy Advisors, LLC (ASA), an-SEC Registered Investment Advisor. Securities offered through registered representatives of Concorde Investment Services, LLC (CIS), member of FINRA/SIPC.

Insurance Services offered through Asset Strategy Financial Group, Inc. (ASFG). ASA, CIS, and ASFG are independent of each other.

This material is not to be interpreted as tax or legal advice. Please speak with your own tax and legal advisors for advice regarding your particular situation.

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