Federal law now requires most private companies to report information ownership information to FinCEN. The Corporate Transparency Act went into effect this year.
If your company was formed before January 1, 2024, the required information must be filed before January 1, 2025.
If your company was formed after January 1, 2024, then you had 90 days from the filing of your formation documents to comply with the new law.
While some businesses may qualify for an exemption, compliance is mandatory for those that do not.
Although the recent ruling in National Small Business United v. Yellen has gained attention, it is important to note that this decision applies solely to the plaintiffs involved in the case. FinCEN has clarified that all other reporting companies must comply with CTA and file beneficial ownership information in accordance with federal regulations.
Filing the information report is relatively simple once you’ve identified the beneficial owners of your company. However, the penalties for non-compliance are significant. If you have not already complied, we strongly recommend doing so in the near future.
If you are unsure whether your company is a “reporting company” or who constitutes a “beneficial owner,” or if you just want assistance filing your BOIR, please give us a call.
