The Corporate Transparency Act ("CTA") took effect on January 1st, 2024.
This new federal law likely affects you if:
Are a business owner
Have beneficial ownership in an entity (including thru a trust!)
Have substantial control over an entity
âť“ Not sure if this applies to you? Don't know where to start? âť“
Check out PB Law's Guide to the CTA + BOI to see if you're impacted
+ what you need to do! 🚩👇
It is estimated that there are over ​30 million existing entities that are going to be required to report all of their Beneficial Ownership Information ("BOI"). Yep, that's right, this law applies to existing businesses, not just newly created ones, and is likely to place a tremendous burden on small business owners and their advisors.
Enacted as part of the National Defense Authorization Act, the Corporate Transparency Act (“CTA”) is a federal law that targets money laundering and financing of terrorism by requiring the disclosure of Beneficial Owners of all Reporting Companies.
Despite its name, it doesn't just impact corporations.
Instead, the reporting requirements under the CTA will apply to all corporations, LLCs or similar entities created by filing of a document with the applicable government agency (in Nevada + California, the Secretary of State).
These are known as "Reporting Companies" under this new law, and will cover pretty much every small business - including real estate + investment holding companies - as well as their owners (including individuals + trusts).
The failure to comply with the CTA is not to be taken lightly, with steep fines ($500/day + $10,000 for criminal fines), plus a possibility of two years in jail.
Click on the link below to review PB Law's Guide to the CTA + BOI to find out if you're impacted and what you need to do (updated May 2024!):
Original Post: January 2, 2024 | Updated: May 6, 2024