New Beneficial Ownership Reporting Requirements: What Small Businesses Must Know
Starting January 1, 2024, the Corporate Transparency Act (CTA) requires many U.S. businesses to file their beneficial ownership information with the Financial Crimes Enforcement Network (FinCEN). This new law is all about transparency—who actually owns and controls these businesses. It’s a one-time filing requirement, though updates are needed if ownership details change. And trust me, this is important to get right.
What’s the Big Deal?
- The CTA targets businesses like corporations and LLCs, making it essential for small businesses to disclose ownership details. This filing can be done securely online, and most small businesses with straightforward ownership setups should find it quick and free.
Here’s the Deadline Breakdown:
- Existing Companies (formed before Jan. 1, 2024): Must file by Jan. 1, 2025.
- New Companies in 2024: Have 90 days to file.
- New Companies after Jan. 1, 2025: Have 30 days to file.
Penalties Are Real and Steep
This isn’t optional. If you miss the filing or fail to update changes within 30 days, the penalties can be severe:
- Daily Fines: Up to $591 per day!
- Criminal Charges: Up to two years in jail and fines up to $10,000 if you willfully ignore or falsify your filing.
Take Action Now!
FinCEN has made it easy to file—no need to hire an attorney or accountant in most cases. Just make sure to get it done, because these penalties aren’t just hypothetical. They’re real, and FinCEN is serious about enforcement.
For more information and resources, including a simple filing demo, visit FinCEN’s portal. Don’t let something as simple as this become a costly headache.
For detailed information, visit FinCEN's website (https://www.fincen.gov)
IF YOU RATHER NOT DEAL WITH THIS, WE CAN FILE YOUR COMPANY REPORT FOR ONLY $206.
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