The Corporate Transparency Act (CTA) requires specific businesses in the United States to report their ownership and control information to the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN). Compliance with this law is essential, as failure to do so can lead to severe penalties. If your business hasn’t filed by December 31, 2024, you are at risk of non-compliance. Avoid delays and legal troubles by seeking the help of an expert business attorney, such as Nicholas Costaras, Esq., to guide you through the process CTA for compliance.

What Is the Corporate Transparency Act?

The Corporate Transparency Act, enacted as part of the Anti-Money Laundering Act of 2020, aims to curb illegal financial activities like money laundering and terrorism financing. The law mandates that corporations, limited liability companies (LLCs), and similar entities file beneficial ownership information (BOI) with FinCEN.

The act primarily targets shell companies—entities that often have no physical presence, and which criminals use to hide illicit gains. However, even small businesses, startups, and inactive entities could be subject to reporting. The Corporate Transparency Act is not just about preventing fraud, but also ensuring financial transparency for all business entities in the U.S. So, your business must meet the filing requirements before the deadline.

Who Needs to File?

The Corporate Transparency Act applies to a wide range of entities. However, it exempts specific organizations, such as publicly traded companies and large entities with more than 20 employees and over $5 million in annual revenue. Your business will likely need to file if it:

• Is a corporation, LLC, or other entity created by filing paperwork with a U.S. state or tribal jurisdiction.

• Is a foreign company registered to do business in the U.S.

If you’re uncertain about whether your business is required to file, Nicholas Costaras, Esq. can provide expert guidance, saving you from potential fines.

How to File Under the Corporate Transparency Act

Filing your beneficial ownership information (BOI) can seem daunting, but it involves a straightforward process:

1. Identify Beneficial Owners:
   A beneficial owner is any person who directly or indirectly owns or controls 25% or more of the company, or exercises significant control over the company’s operations. Make sure you have this information ready before beginning the filing process.

2. Collect Required Information:
   For each beneficial owner, you’ll need:

   • Full legal name

   • Date of birth

   • Residential or business address

   • A unique identifying number, such as a passport number or driver’s license.

3. Submit Information to FinCEN:
   You will submit the collected information to FinCEN electronically. It is critical that this information is accurate and complete to avoid penalties. Errors or omissions can lead to both civil and criminal penalties under the law.

4. Secure Legal Help:
   Given the complexity of legal compliance and potential penalties for non-compliance, you should seek assistance from a qualified attorney. A business lawyer like Nicholas Costaras, Esq., can help you avoid missteps and ensure your filing is accurate.

Why You Need to Act Now

The filing deadline for the Corporate Transparency Act is December 31, 2024. However, waiting until the last minute could leave your business scrambling to gather documents and rush through filing. Mistakes in your submission can result in heavy fines, including civil penalties of $500 per day for failure to file, and criminal penalties of up to $10,000 and two years in prison for willfully submitting false information.

Don’t risk your business’s future by delaying compliance. Filing early also gives you time to correct any potential errors before the deadline, and avoid any disruptions to your business operations.

Common Mistakes to Avoid When Filing

Businesses that wait until the last minute often make the following mistakes when trying to comply with the Corporate Transparency Act:

1. Incorrect Information:
   Providing inaccurate or incomplete information about beneficial owners is a common pitfall. Double-check all names, addresses, and identification numbers before submitting.

2. Failure to Identify All Beneficial Owners:
   Many businesses overlook individuals who have indirect control, such as through a trust or another business entity. Consult with a legal expert to ensure you’re identifying everyone who qualifies as a beneficial owner under the CTA.

3. Late Filing:
   Missing the December 31, 2024 deadline could result in hefty penalties. Start the process now to ensure you don’t fall behind.

4. Ignoring Exemptions:
   Some businesses may be exempt from filing, but assuming you qualify for an exemption without confirming can be dangerous. Always consult an attorney to confirm whether or not your business needs to file.

How an Attorney Can Help

Navigating the complex requirements of the Corporate Transparency Act can be overwhelming, especially for small businesses and startups. An attorney like Nicholas Costaras, Esq. specializes in helping businesses ensure compliance. By availing his services, you will receive:

• A thorough review of your business structure to determine whether you need to file under the Corporate Transparency Act.

• Assistance in identifying all beneficial owners, especially in complex ownership structures.

• Guidance in gathering the required documents and information, ensuring they meet FinCEN standards.

• Legal advice to prevent potential missteps that could lead to fines or penalties.

• Timely filing to ensure your business meets the December 31, 2024 deadline without hassle.

The Corporate Transparency Act is a law that your business cannot afford to ignore. With the December 31, 2024 deadline looming, now is the time to get ahead of the curve and ensure full compliance. Waiting until the last minute could put your business at risk of severe penalties, both civil and criminal. Filing correctly and on time requires gathering the right information and ensuring it is submitted accurately to FinCEN.

Avoid costly mistakes by seeking professional help. Nicholas Costaras, Esq., an expert business attorney, can guide you through every step of the filing process to ensure your business stays compliant with the Corporate Transparency Act. Don’t wait—get started today by scheduling a consultation.