Corporate Transparency Act (CTA) Compliance

Recent federal regulations under the Corporate Transparency Act (CTA) require certain businesses to disclose beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN).

Who Must Report?The CTA applies to most entities, requiring reports on individuals with substantial control or 25% or more ownership. Exemptions are limited to entities such as large operating companies, regulated institutions, and certain inactive organizations.

Compliance Deadlines:

• Entities formed before January 1, 2024: Initial reports due January 1, 2025.

• Entities formed on or after January 1, 2024: Reports due within 30 days of formation.

The Risks of Non-Compliance:Failure to comply can result in daily fines, capped at $10,000, or criminal penalties, including imprisonment. Non-compliance also risks reputational damage, loss of good standing, and eligibility for government contracts or financing opportunities.

Ben Moshe & Stein offers tailored guidance to determine your reporting obligations and facilitate timely, accurate submissions. Contact us today to ensure your business meets CTA requirements and avoids costly penalties.