Corporate Transparency Act Compliance and BOIR Filing

The CTA, which went into effect this year, applies to most LLCs, corporations, limited partnerships, and other closely held entities. It is essential to understand the requirements of this new law, as non-compliance may result in civil and criminal penalties.

The CTA aims to create a national database of companies in the United States, identifying the individuals behind these companies as owners or control persons. This law is part of a broader effort to combat financial crimes, including money laundering, terrorism, and tax evasion. While the law is intended to aid law enforcement, it applies to all businesses.

Business owners are now required to file reports with the Financial Crimes Enforcement Network (FinCEN). Failure to file or providing false information may result in significant civil and criminal penalties. The required report is the Beneficial Ownership Information (BOI) Report.

The BOI Report is a federal requirement that mandates many US companies to report information about their beneficial owners to FinCEN. Beneficial owners are individuals who directly or indirectly own or control a company. We can assist with the necessary legal analysis, file the report on your behalf, and ensure the protection of your privacy.

Failure to file or providing false information on a BOI Report may result in:

• A criminal fine of $591 per day, up to $10,000
• Two years imprisonment