New Laws Every Business Owner Should Know — Corporate Transparency Act

The Corporate Transparency Act

Beginning January 1, 2024, the federal Corporate Transparency Act (CTA) requires certain types of entities to file a beneficial ownership information (BOI) report with the Financial Crimes Enforcement Network (FinCEN), a bureau of the United States Department of Treasury.

Each “reporting company” must file a BOI report with FinCEN. As defined by the CTA, a “reporting company” means a corporation, limited liability company, or other similar entity that is created or registered to do business in the U.S. by filing a document with a secretary of state (or comparable office).

The CTA contains other important definitions; lists certain exemptions; specifies reportable information; and imposes both civil and criminal penalties for violations of the reporting requirements.

The beneficial ownership information required by the CTA should only be submitted directly to FinCEN through its online Beneficial Ownership Secure System (BOSS).

Existing Companies Have One Year to File; New Companies Must File Within 90 Days of Creation or Registration

If you are a small business and have questions about how to remain compliant with the CTA requirements, you can review this document, or join the Blissness School Los Angeles retreat to learn all about what you need to do and know by the end of 2024.