Corporate Transparency Act: Is Your Small Business Subject To New Mandatory Reporting Requirements

We want you to be aware of the Corporate Transparency Act (CTA) (31 U.S.C. § 5336), which sets forth new mandatory reporting requirements that may directly impact your business. According to the U.S. Department of the Treasury, the CTA “creates a beneficial ownership information reporting requirement as part of the U.S. government’s efforts to make it harder for bad actors to hide or benefit from their ill-gotten gains through shell companies or other opaque ownership structures.” The Act specifically targets smaller businesses, and it requires the reporting of Beneficial Ownership Information (BOI) to ensure greater accountability.

When Are Reports Due?

The Corporate Transparency Act became effective on January 1, 2024. For existing reporting companies, the initial reports must be filed within one year from the effective date. Companies created after this date have 30 days from their creation or registration to file.

It is essential to keep your records up to date. Reports must be updated within 30 days of any changes in beneficial ownership, such as through the sale of a business, merger, acquisition, death, or upon becoming aware of any previously filed inaccurate information.

We understand that compliance with new laws and regulations can be challenging, and we are here to assist you in navigating these changes smoothly. Please feel free to reach out if you have any questions or require support to ensure that your business meets these mandatory reporting requirements.