The Corporate Transparency Act (CTA), effective January 1,2024, introduces a new federal filing mandate for most corporations, LLCs, andother business entities, referred to as “reporting companies.” Entities formedin 2024 must file a Beneficial Ownership Information (BOI) report with theTreasury’s Financial Crimes Enforcement Network (FinCEN) within 90 days offormation. For companies created before 2024, the deadline to file is January1, 2025 (think December 31, 2024).

Some businesses, like large operating companies with over 20employees and $5 million in income, are exempt. The BOI report must include thename, birth date, address, and an ID number with an image of the ID for each“beneficial owner,” defined as those who own or control at least 25% of thecompany or exercise substantial control.

Reports are filed online via the Beneficial Ownership SecureSystem (BOSS) with no filing fee. The information aids law enforcement incombating financial crimes and is not publicly accessible. Questions aboundregarding who must file and the specifics of the BOI report, including theresponsibilities of registered agents and the necessity of updating reportswhen ownership changes occur.

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