The Corporate Transparency Act (CTA) mandates that U.S. corporations, LLCs, S corporations, and similar entities file their Beneficial Ownership Information (BOI) with the Financial Crimes Enforcement Network (FinCEN). This initiative aims to enhance corporate transparency and combat illicit financial activities.
FinCEN, the government agency responsible for collecting BOI, estimates that around 32 million businesses will need to comply with this reporting requirement. However, certain entities—such as nonprofits, sole proprietors, and specific partnerships—are exempt. For a complete list of exemptions, refer to the FinCEN website.
Failure to comply with the CTA can result in hefty daily fines and noncompliance may lead to severe criminal penalties, including fines and potential imprisonment. To avoid these consequences, ensure your BOI report is filed with FinCEN by the January 1, 2025 deadline.
Visit the FinCEN website here for more details and to complete your BOI filing.