What is the Corporate Transparency Act?
Staring January 1 , 2024, a majority of businesses will be required to report information about the beneficial owners of the company
- Businesses will need to report information regarding information about the business’ owners, officers, and controlling persons.
Who has to report?
- Any corporation or limited liability company LLC, or entity otherwise authorized by a secretary of state to do business.
- Entity formed under the law of a foreign country and registered to do business in the United States.
When is this report due?
- For companies formed prior to Jan 1, 2024: Jan 1, 2025
- For new companies formed in 2024: 90 days after formation
- For new companies formed in 2025: 30 days after formation
Why do businesses have to do this report?
- The CTA was created to prevent illicit activities including money laundering and terrorist financing.
What Information has to be Reported?
Identifying Information of Company:
- Legal Name
- Address of Business
- Jurisdiction in which it was form or first registered
- Tax ID Number
Identifying Information of Owners and Company Applicants:
- Legal Name
- Date of Birth
- Current Address
- ID Number (passport, driver’s license, etc.)
- Image of Document with ID
FinCEN Identifier
- Unique Identification Number
Failure to file penalties:
Civil: Penalties are up to $500 per day, or
Criminal: Up to 2 years of jail and/or a fine up to $10,000
If you're a business owner in the New York Metro Area and need help making the best decisions for your business, request a consultation with our experienced accountants today. We look forward to providing you service.
