FinCen-BOIR

FinCen - BOIR

The Corporate Transparency Act (CTA)

Action Required for All Businesses

Attention business owners! Compliance with FinCEN’s Beneficial Ownership Information Reporting (BOIR) to protect your business and support a transparent financial system.If your company is required to file, don’t wait—take action now to avoid penalties and ensure your business stays in good standing. Reporting is straightforward, and resources are available to guide you every step of the way.

What is The Corporate Transparency Act (CTA)

The Corporate Transparency Act (CTA) is a law passed by Congress in 2021 to increase financial transparency and prevent the misuse of companies for illegal activities. It requires many companies to report their beneficial ownership information (BOI) to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury. This framework is an important step in stopping the flow of illicit funds that hurt law-abiding small businesses, as well as protecting our economic and national security from bad actors.

What Companies Need to Report?

Companies required to report are known as reporting companies, which include:
  • Domestic Reporting Companies: Corporations, limited liability companies (LLCs), or any other entity formed by filing documents with a U.S. secretary of state or similar office.
  • Foreign Reporting Companies: Entities formed under foreign law that register to do business in the U.S. by filing with a secretary of state or similar office.
Note: Sole proprietorships are not considered reporting companies unless they are created or registered in the U.S. by filing specific documents with a secretary of state or similar office. 

When Should Companies Report?

The timeline for filing a Beneficial Ownership Information (BOI) report depends on when the company was created or registered:
  • Reporting companies that were created or registered prior to January 1, 2024 have until January 13, 2025 to file their initial beneficial ownership information reports with FinCEN. (These companies would otherwise have been required to report by January 1, 2025.)
  • Reporting companies created or registered in the United States on or after September 4, 2024 that had a filing deadline between December 3, 2024 and December 23, 2024 have until January 13, 2025 to file their initial beneficial ownership information reports with FinCEN.
  • Reporting companies created or registered in the United States on or after December 3, 2024 and on or before December 23, 2024 have an additional 21 days from their original filing deadline to file their initial beneficial ownership information reports with FinCEN.
  • Reporting companies that qualify for disaster relief may have extended deadlines that fall beyond January 13, 2025. These companies should abide by whichever deadline falls later.
  • Reporting companies that are created or registered in the United States on or after January 1, 2025 have 30 days to file their initial beneficial ownership information reports with FinCEN after receiving actual or public notice that their creation or registration is effective.
  • As indicated in the alert titled “Notice Regarding National Small Business United v. Yellen, No. 5:22-cv-01448 (N.D. Ala.)”, Plaintiffs in National Small Business United v. Yellen, No. 5:22-cv-01448 (N.D. Ala.)—namely, Isaac Winkles, reporting companies for which Isaac Winkles is the beneficial owner or applicant, the National Small Business Association, and members of the National Small Business Association (as of March 1, 2024)—are not currently required to report their beneficial ownership information to FinCEN at this time.
Noted: Reporting is done through the BOI E-Filing website, launched by FinCEN on January 1, 2024, and there is no fee for submitting reports.

What Happens If You Don’t Report?

Failing to report BOI within the required timeframe may result in civil and criminal penalties.

If you have any questions, please contact Sreymom Pech at sreymom.pech@caccwa or click below button to learn more.

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