Important: Corporate Transparency Act (CTA) Reporting Requirements
Dear Conscious Business Connections Guests,
I’m here to share critical information about the Corporate Transparency Act (CTA) and its Beneficial Ownership Information (BOI) reporting requirements. These regulations are aimed at enhancing transparency and combating financial crimes like money laundering, fraud, and tax evasion. Please review the following details carefully to ensure compliance:
Who Must Report
The CTA applies to most domestic and foreign companies registered to do business in the United States. Reporting companies must disclose information about individuals who:
Own or control at least 25% of the entity, or
Hold significant responsibility for managing the entity (e.g., executive officers).
Key Filing Deadlines
Domestic Reporting Companies Formed Before January 1, 2024:
Must file an initial BOI report by January 1, 2025.
Must file an initial BOI report by January 1, 2025.
Domestic Reporting Companies Formed in 2024:
Must file a BOI report within 90 calendar days of: Receiving actual notice of formation, or
Public notice of formation by the Secretary of State or similar office.
Must file a BOI report within 90 calendar days of: Receiving actual notice of formation, or
Public notice of formation by the Secretary of State or similar office.
Foreign Reporting Companies Registered in 2024:
Must file a BOI report within 90 calendar days of: Receiving actual notice of registration, or
Public notice of registration by the Secretary of State or similar office.
Must file a BOI report within 90 calendar days of: Receiving actual notice of registration, or
Public notice of registration by the Secretary of State or similar office.
Reporting Companies Formed or Registered On or After January 1, 2025:
Must file an initial BOI report within 30 calendar days of receiving actual or public notice of formation or registration.
Must file an initial BOI report within 30 calendar days of receiving actual or public notice of formation or registration.
What Information is Required
Reports must include:
The entity’s full legal name, address, and EIN (Employer Identification Number).
For each beneficial owner and certain company applicants: Full name, date of birth, residential address, and an identifying document (e.g., driver’s license or passport).
Exemptions
Certain entities, such as publicly traded companies and specific regulated industries, are exempt from these reporting requirements.
Why This Matters
Failure to comply with the CTA can result in significant penalties, including fines of up to $500 per day of non-compliance and potential criminal charges.
If you have any questions or need support navigating these requirements, please don’t hesitate to reach out. You can email me at kristin @keepinglighton.org for support. Ensuring timely compliance is essential for protecting your business.
Warm regards,
Kristin
Kristin
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