The CTA is designed to enhance transparency in business ownership and prevent illicit activities such as money laundering and terrorism financing. Under this legislation, certain entities are required to disclose information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN) which is a division of the US Treasury.

As your trusted CPA firm, we want to make you aware of your obligations under the CTA and assist you in fulfilling these requirements. Here are the key points you need to be aware of:

1. Applicability: The CTA applies to certain entities, including corporations, limited liability companies (LLCs), and other similar entities. If your business falls within the scope of the Act, you will be required to report information about your beneficial owners.
2. Beneficial Owner Information (BOI): Beneficial owners are individuals who, directly or indirectly, exercise substantial control over the entity or have a significant ownership interest. The Act requires the disclosure of personal information such as name, address, date of birth, and social security number for each beneficial owner.
3. Filing Requirements: Entities covered by the CTA will need to submit beneficial ownership information to FinCEN. The initial reporting deadline is December 31, 2024 for entities in existence in 2023 and within ninety (90) days after formation for entities formed in 2024.  Subsequent reports must be filed within one year to report any changes to the beneficial ownership information.
4. Penalties for Non-Compliance: Non-compliance with the CTA can result in substantial penalties. It is crucial to meet the reporting requirements within the specified due dates to avoid any adverse consequences.

We will be prepared to begin working with you by mid-May.  We recommend that you reach out to us in early May to schedule a consultation and begin the process of completing the necessary forms.

If you would like to learn more, there is information available at the following websites:

https://www.fincen.gov/boi/small-business-resources 

https://www.fincen.gov/boi 

https://www.fincen.gov/beneficial-ownership-information-reporting-rule-fact-sheet 

We understand that regulatory changes can be complex, and we are committed to providing the guidance and support necessary to navigate these requirements seamlessly. 

TKM, LLC