The Corporate Transparency Act What You Need To Know….. And What You Need To Do!

The Corporate Transparency Act (CTA) was enacted into law by Congress on January 1, 2021 as part of the National Defense Authorization Act. However, the rules of the Act didn't go into effect until January 1, 2024. The CTA is an anti-money laundering measure that requires certain companies to report information about their beneficial owners and controlling individuals to the U.S. Treasury's Financial Crimes Enforcement Network (FinCEN). The goal of the CTA is to help prevent and combat money laundering, corruption, terrorist financing, tax fraud, and other illegal activities.

The CTA imposes a mandatory reporting requirement for all companies not qualifying for an exception. If you have a business entity with less than 20 employees, your business entity most likely needs to file a BENEFICIAL OWNERSHIP INFORMATION REPORT.

Beginning on January 1, 2024, BOI reports must be filed electronically using FinCEN’s secure filing system. These reports will be stored in a centralized database and only shared with authorized users for purposes specified by law.

• For Businesses created in 2024.

If your company was created or registered in 2024, you have 90 calendar days to file after receiving actual or public notice that its creation or registration is effective.

• For Companies Existing Prior to January 1, 2024:

If your company was created or registered to do business in the United States before January 1, 2024, your BOI Reports must be filed by January 1, 2025.

Beneficial Owner is defined as any individual who (i) owns 25% or more of a reporting company or (ii) exercises “substantial control” over a reporting company. Many senior executives (such as a company’s president, chief financial officer, general counsel, chief executive officer, chief operating officer, LLC Managers, or any other officer who performs a similar function) will be deemed beneficial owners under the CTA due to their control over a reporting company.

At Kalis, Kleiman & Wolfe, we can assist you with the BOI Report filing and submission process. To file, you will need to have on hand basic information for your company as well as for each beneficial owner, together with a form of current government issued identification (driver’s license, ID card or passport).

Our fee for filing your initial BOI Report is $300.00. Once filed and submitted, we will provide you with proof of the satisfactory filing of the BOI and the FinCEN ID assigned to your Company.