Corporate Transparency Act Now in Effect for LLCs

As of the first of January, 2024, the Corporate Transparency Act (CTA) requires most new U.S. LLCs and corporations to disclose their beneficial owners to the government.

Reporting for New and Existing Companies

New LLCs and corporations formed on January 1, 2024, or after, are required file a beneficial ownership report with FinCEN within 90 days of formation.

New LLCs and corporations formed on January 1, 2025, or after, are required file a beneficial ownership report with FinCEN within 30 days of formation.

For existing companies formed before January 1, 2024, the deadline to file the initial beneficial ownership report is January 1, 2025.

Information to Report

Beneficial owners are individuals who own 25% or more of the company or who exercise substantial control over the company.

The report must include beneficial owners’ full legal name, birth date, address, and an identifying number (e.g., driver’s license or passport number) from an acceptable identification document.

Companies must also file updated reports within 30 days of any changes to their beneficial ownership information.

Non-Compliance Penalties

Failing to report or providing false beneficial ownership information can result in civil penalties of $500 per day (up to $10,000), and willful violations can lead to criminal fines and/or imprisonment.

Ensuring Your LLC is Compliant

Now that the CTA is in effect, it’s crucial that your LLC or corporation has a system in place to identify beneficial owners, gather the required information, and file timely reports with FinCEN.

We Can Help

If you need assistance understanding your company’s Corporate Transparency Act obligations or have questions about the reporting requirements, our team is ready to help. Contact us today.

Also See

Corporate Transparency Act Bombshell: Why Your Business Needs to Act NOW