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Attention LLC and corporation owners!
Are you aware of the new mandatory reporting requirements under the Corporate Transparency Act (CTA)? Enacted in 2021, the CTA aims to enhance transparency and combat illicit finance by requiring certain businesses to disclose beneficial ownership information to the Department of Treasury. Importantly, this reporting does not create new taxes or fees, but failure to comply can result in fines and potential criminal action.
What are the Key Points of the Corporate Transparency Act?
Mandatory Reporting
The Department of Treasury requires corporations and LLCs, with certain exceptions, to report the identities of their beneficial owners.
Information Required
This includes the beneficial owner’s name, address, and other details, along with a copy of their driver’s license or passport.
Purpose
The intent is to prevent misuse of businesses, such as using straw companies to hide foreign entities that may be involved in illicit financial activities.
What Does This Mean for Your Business?
Existing Businesses (before Dec 31, 2023): You have until December 31, 2024, to file this information and then update it annually.
New Businesses (starting in 2024): You have 90 days from formation to report beneficial ownership information and details of the person assisting with incorporation.
How Paley & Prehn Can Help You
In addition to assisting with Corporate Transparency Act (CTA) reporting, Paley & Prehn, PLC offers a comprehensive range of ongoing business compliance services. These services are crucial for ensuring that your business adheres to all local, state, and federal regulations, which is an ongoing responsibility that demands meticulous attention to detail and timely action. By partnering with Paley & Prehn, PLC, you can navigate the complexities of business compliance with confidence, ensuring that your business remains in good standing and avoids potential legal pitfalls and penalties associated with non-compliance.