How does the passing of the Corporate Transparency Act (CTA) impact your business? If you meet the qualifications set forth in the CTA, you may have an obligation to fill out a beneficial ownership information (BOI) report in 2024. What do these reports entail, though, and when are they due? Are there penalties you need to worry about if you fail to file on time?
FileForms is here to answer all these questions and more in light of the recent CTA passing. You can work with us to determine what impact the CTA may have on your business, if any, and what information the act requires you to share with the federal government.
Remaining compliant with ever-evolving regulatory and informational reporting requirements for businesses may be part and parcel of owning a business, but that doesn’t make the process easy. FileForms understands that while proactive in its efforts to limit money laundering and terrorism financing, the CTA may serve as another regulation that businesses and their legal teams must integrate into everyday management.
Fortunately, we’re here to help break down the importance of the CTA and related BOI reports. We can help businesses across all industries determine how the CTA impacts their day-to-day and year-end responsibilities.
The CTA declares that all businesses that meet the bill’s qualifications, known as reporting companies, have an obligation, beginning January 1, 2024, to file beneficial ownership information (BOI) reports. Financial institutions note that this effort should, ideally, limit the amount of financial misconduct that takes place through opaque structures, shell companies, and other bad actors.
That said, FinCEN and related institutions note that some businesses, including larger ones, may not have to file BOI reports due to their public presence or if they operate in an industry that already requires BOI reporting.
Reporting companies have an obligation to file a BOI report after January 1, 2024. Interested parties can reach out to FileForms to determine whether or not they need to integrate BOI reports into their filing schedules.
The businesses that don’t have to file BOI reports if they:
As stated in the CTA, businesses missing one of the aforementioned features must file BOI reports.
Certain businesses that may be exempt from BOI reporting include the following:
Parties uncertain about their standing in the eyes of the CTA can work with us to determine how best to proceed.
If you and your business have an obligation to file a BOI report beginning January 1, 2024, you can turn to FileForms for filing guidance. You can learn more about the services that FileForms offers for the sake of CTA compliance today. Contact us to discuss how today’s financial transparency laws may have a significant impact on your business.
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