If you are a business owner, there is a huge change starting 2024:
Corporate Transparency Act
You may or may not have heard about it but YES… It applies to you! I want to break down this law for you from one business owner to another. So let’s get down to business:
What Is It?
Starting January 1, 2024, the Corporate Transparency Act requires that certain businesses [most of you reading this] report their beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN). Prior to this, all that was required were state filings. THIS IS A MASSIVE SHIFT.
Why Was This Law Enacted?
This federal law was enacted to combat money laundering and terrorism.
Who Is Affected By This New Law?
A business owner forming or renewing an existing company after January 1, 2024. Even if you think the act only pertains to large corporations, think again. Small and mid-sized enterprises are equally affected.
What Needs To Be Disclosed?
You’ll need to provide detailed information about individuals who either directly or indirectly own or control your company to the federal government. More specifically, the full legal name, date of birth, address, and unique identification number of each individual holding at least a 25% ownership interest or exercising substantial control over the company. For now, the public will not be able to access this information.
What Are The Repercussions For Not Filing or Missing a Deadline?
Here’s the critical part—missing deadlines can cost you dearly. Timely filing is crucial to avoid penalties that could amount to $500 a day and up to two years in prison!!!! So make sure you file within the stipulated time frames based on when your company was formed to stay in compliance and out of trouble.
Do Not Do It Alone!
We recommend seeking legal support to help your with your filing[s], and our team at Grimaldi Law Firm is ready to help you with your compliance with the Corporate Transparency Act! We will hold your hand to make sure all your T’s are crossed and I’s are dotted so you can avoid the headaches, fines, and jail time!
