Corporate Transparency Act (CTA)
What It Is: CTA passed by Congress Jan 1, 2021. Significant reforms to money laundering, terrorist financing, corruption, and tax fraud.
What? Most active Corporations and LLCs have to file a Beneficial Ownership Information report (BOI). These BOI are filed with the Financial Crimes Enforcement Network (FinCen).
What it Means to You? It simply means you have to report any owner of the company that has a 25% or greater share of interest in the company. 25% is the threshold to be considered a “Beneficial Owner.”
What Are you Reporting? Company Name, DBA if applicable, EIN, and principal place of business street address. IE No PO Box. Also, the demographic information of the owners: Names, DOBs, SSNs, Addresses, and a copy of a Driver’s License or Passport. Additionally the percentage of ownership of the company for each beneficial owner.
Where Are you Reporting? The information is filed with FinCen. You can either file it directly by yourself or have a third-party file on your behalf. As a service to our clients, we are happy to file this on your behalf for the low-low price of $150.
When Do you Have to Report it? Existing companies have until 1/1/25 to file. Companies created in 2024 must report within 90 days.
Is this an Annual Filing? No. If there are changes in the beneficial owners, you don’t have to file a report each year. Only a change in beneficial owners would trigger an updated filing.
Who’s Exempt from Reporting? DBAs and Assumed Business Names, Sole Proprietorships, all are exempt. Even if they have an EIN. Most Trust and Estates are exempt from filing. Banks, Publicly Traded Companies, Insurance Companies, Accounting Firms and Other Financial Services companies are all exempt. Nonprofits and inactive entities are also exempt. For a full list, here’s a helpful link.
Next Steps: How do I File with GGT? If you prefer to file yourself, here’s a link to FinCen. If you would like to file with us, here’s a link to our online organizer.