The Corporate Transparency Act (CTA) is back in effect, introducing new compliance requirements for many businesses across the United States. If you’re a business owner, it’s crucial to understand what this means for you and how to stay compliant to avoid costly penalties.
What Is the Corporate Transparency Act?
Enacted as part of the National Defense Authorization Act for Fiscal Year 2021, the CTA requires certain U.S. businesses to disclose information about their beneficial owners—individuals who own or control at least 25% of a company or have significant influence over its operations.
This legislation was designed to increase financial transparency and prevent illicit activities such as money laundering, terrorist financing, and tax fraud through anonymous corporate structures.
What Is Beneficial Ownership Information (BOI) Filing?
The BOI filing is the process of submitting essential information about your company’s beneficial owners to the Financial Crimes Enforcement Network (FinCEN). This report helps authorities track who is behind businesses operating within the U.S.
Information required includes:
– Full legal name of each beneficial owner
– Date of birth
– Residential address
– Identification number from a valid government-issued ID (e.g., driver’s license, passport)
Important Deadlines for BOI Filing
– Entities formed before January 1, 2024: Must file by March 21, 2025.
– Entities formed on or after January 1, 2024: Must file within 90 days of formation.
Who Is Exempt from BOI Filing?
Certain entities are excluded from BOI filing requirements, including:
– Publicly traded companies
– Large operating companies with:
– Over 20 full-time employees
– More than $5 million in gross annual revenue
– A physical presence in the U.S.
– Regulated entities such as banks, credit unions, and insurance companies
Penalties for Non-Compliance
Failing to file your BOI report—or submitting false information—can result in severe consequences:
– Civil fines: Up to $500 per day until the violation is resolved
– Criminal penalties: Up to $10,000 in fines and/or up to two years in prison
How to File Your BOI Report
You can complete your BOI filing for free through FinCEN’s official portal: https://boiefiling.fincen.gov
If you prefer assistance with the filing process, we offer a service for $100 per entity. We’ll handle the paperwork for you, ensuring accuracy and compliance.
Get Help with Your BOI Filing
Unsure if your business needs to file? Have questions about the documentation process?
We’re here to help. Schedule a free consultation here and let’s make sure your business remains compliant with the latest regulations.
Stay informed, stay compliant, and avoid unnecessary penalties with Blueprint Financial Group.
PUBLISHED Feb 25
Understanding the Corporate Transparency Act: What Your Business Needs to Know
