Guide to Complying with the Corporate Transparency Act

April 3, 2024

The Corporate Transparency Act (CTA), effective as of January 1, 2024, requires many U.S. businesses to report beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN).

This measure aims to combat illicit finance by ensuring transparency about who owns and controls businesses in the United States.

Filing Requirements and Deadlines

Existing Businesses: Companies in operation before January 1, 2024, must submit their beneficial ownership information by January 1, 2025.

New Businesses: Companies established or registered in 2024 are required to file within 90 days of being officially formed or registered.

Filing is straightforward, secure, and free, intended to make compliance accessible for all required entities.

What Needs to Be Reported?

Reporting companies must provide detailed information about each beneficial owner, including:

  • Name
  • Date of birth
  • Address
  • An identifying number from a valid U.S. driver’s license, U.S. passport, state, local, or tribal ID, or a foreign passport if no U.S. identification is available, along with an image of the document.

For businesses formed on or after January 1, 2024, additional details about the company’s formers or registrants are needed.

Resources and Assistance

FinCEN provides extensive resources to facilitate compliance, including a Small Entity Compliance Guide, informational videos, webinars, FAQs, and a dedicated contact center.

These resources are designed to help small businesses understand and meet their reporting obligations easily.

Compliance Importance

Meeting the CTA reporting requirements is crucial to avoid penalties, including fines and potential criminal charges, and to ensure business operations remain unaffected.

Compliance also contributes to the broader goal of preventing money laundering and financial crimes, safeguarding the U.S. financial system.

Partner with Percipio Business Advisors for CTA Compliance

Percipio Business Advisors is prepared to assist your business with navigating the CTA reporting requirements.

Our expertise ensures that your business not only complies with the current regulations but also remains informed about any future changes.

Contact Percipio Business Advisors today to ensure your business is compliant and well-protected against financial crimes.

[email protected]

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