Corporate Transparency Act

Starting January 1, 2025, many types of businesses will be required to comply with the Corporate Transparency Act (CTA). If you are an owner or beneficial owner of a corporation, limited liability company (LLC) or a similar entity that was created by filing a document with the secretary of state or similar office, you may be required to file an initial Business Ownership Information (BOI) Report. The purpose of the BOI reporting requirement is to prevent individuals from hiding malicious activity, like money laundering, from US law enforcement agencies.

As someone who is a beneficial owner of an LLC and recently filed an Initial BOI report with the Financial Crimes Enforcement Network (FinCen), I found the process easy and that it did not take much time to complete.  Below is more background about the requirement along with a few tips from one filer to another that you may find useful:
    •    Entities formed PRIOR to January 1, 2024, must file a report with FinCEN by January 1, 2025
    •    Entities formed AFTER January 1, 2024, must file a report with FinCEN within 90 days of the date of creation
    •    New entities formed AFTER 12/31/2024 must file a report with FinCEN within 30 days
    •    Going forward, reporting entities that have changes to previously reported information, must file within 30 days.
    •    Interested readers can find more information about exempt entities, definition of beneficial owners, and what information is required to be reported on the initial BOI at the FinCen website https://www.fincen.gov

    •    Non-compliance with the BOI reporting requirement can result in criminal and civil penalties of more than $500/day with up to two years of imprisonment.
    •    There is no fee to file the report.
    •    When ready to file, go to https://boiefiling.fincen.gov. 
    •    We suggest using the “File Online BOIR” method 
    •    Before beginning the reporting have the following information available:
    •    EIN for the entity
    •    Electronic copies (scan or pictures) of Driver’s License or US Passport for each beneficial owner

As someone who recently completed an Initial BOI report for our LLC, it was a quick and easy process.  If you have any questions, please let us know.