What Every Small Business Needs to Know About the Corporate Transparency Act

Posted under: SMB
Date: 2023-12-27
What Every Small Business Needs to Know About the Corporate Transparency Act

The Corporate Transparency Act (CTA) takes effect on January 1, 2024, impacting U.S. small businesses. Enacted in 2021, it aims to combat illicit activities like tax fraud and money laundering by mandating businesses meeting specific criteria to submit a Beneficial Ownership Information (BOI) Report to FinCEN. The report includes details identifying individuals significantly associated with the reporting company. Beneficial owners are those with major influence or at least 25% ownership. Reporting companies must provide various details, and while no annual reporting requirement is set, updates are required for changes. Reporting companies must provide their legal name, trademarks, and current U.S. address. Initial filing deadlines vary based on business establishment dates. Professional assistance is recommended for timely and accurate submissions due to complexities.

Read more at: www.uschamber.com