As of 1/1/2024, a new federal law—The Corporate Transparency Act (CTA)—has taken effect. The Federal Government currently has no centralized database that contains information on every entity in America – this law forces you to report to the Federal Government information about your entity to aid them in anti-money-laundering efforts.
Entities (LLCs, Incs) that existed before 1/1/2024 (i.e. your entity) have until 1/1/2025 to provide basic information to the Federal Government regarding the entity. This information is reported on a “Beneficial Ownership Information Report” (BOI). The information provided is basic:
- Entity name
- Entity Address
- Ownership information:
- Names
- Addresses
- Driver’s license images
If the BOI isn’t filed by the due date: the penalty is $591 per day, up to $10,000.
Another note:
- The law also says that your entity has 30 days to update the BOI filing if it changes any of the following after the initial filing:
- Entity name
- Ownership
- Address
- Any owner’s address
Ask us if this applies to you and if you need our office to submit the filing on your behalf.