The Corporate Transparency Act
What You Need to Do
A new law requires business entities to file paperwork disclosing its ownership.
It is mandatory and substantial fines are possible for failure to comply. More information about this law is detailed in the table below.
Our attorneys are on standby to assist in completing and filing the required paperwork on behalf of our clients. We believe this also serves as a valuable opportunity to check in with our clients, have a conversation, and address any outstanding items that may require attention.
We charge a flat fee of $350 to complete the required filing and connect for a consultation. To schedule a consultation, please complete the form below.
|What is it?
|A new law, called the Corporate Transparency Act, requires that that you submit information regarding the ownership of your business to the Financial Crimes Enforcement Network.
|The United States government is collecting this information to assist efforts to make it harder for bad actors to hide or benefit from ownership in shell companies or other ownership structures.
|Do I need to do anything?
|Yes. Unless your business is one of the 23 exempt entities, then you are a “reporting company” and will be required to complete and submit the reporting form.
|What do I file?
|You are required to file “Beneficial Ownership Information Report” (BOIR) which can be completed here.
|What information do I need to complete the BOIR?
|Legal name, tax identification number, jurisdiction of formation, business address, contact information for each “Beneficial Owner” of the business, copy of identification (i.e. driver’s license).
|Who is a “Beneficial Owner”
|A Beneficial Owner is an individual that either directly or indirectly: (1) exercises substantial control over the reporting company or (2) owns or controls at least 25% of the reporting company’s ownership interests.
|What is “substantial control”?
|Any individual that is a “senior officer,” has the ability to appoint or remove officers, important decision maker, or other form of substantial control.
|When do I need to file the BOIR?
If your business was created prior to January 1, 2024, then you must file the BOIR by January 1, 2025.
If your business was created during 2024 then you have 90 days from creation to file.
Going forward, businesses created post-2025 will have 30 days from creation to file.
|Are there penalties for not filing a BOIR?
|Yes. You can be fined up to $500 per day the BOIR is not filed. You could also be subject to criminal penalties of up to 2 years imprisonment and a fine of up to $10,000.
|Do I need an attorney to file a BOIR?
|No. However, we can streamline the process and use our time together to make sure your organizational documents are in proper order.