The Corporate Transparency Act (CTA), a newly enacted law as of 2024, imposes additional reporting requirements on most small businesses. Failure to comply with these requirements can result in both monetary penalties and criminal consequences.
Enacted in 2021 with bipartisan support, the CTA aims to prevent and track financial crimes. Effective January 1, 2024, numerous small businesses in the United States are obligated to disclose their beneficial ownership information by submitting a Beneficial Ownership Information (BOI) report to the U.S. Treasury's Financial Crimes Enforcement Network (FinCEN). Companies established before January 1, 2024, have until January 1, 2025 to comply with the reporting requirements.
Excerpt from Lawyers for Civil Rights (Boston): Navigating the Corporate Transparency Act (CTA)
Below is a list of resources to help you learn more about the Corporate Transparency Act (CTA.) Disclaimer: The resources provided should not be seen as endorsements or legal advice. Business owners are encouraged to seek guidance from their legal and financial advisors for tailored assistance.
Resources:
Lawyers for Civil Rights (Boston): Navigating the Corporate Transparency Act (CTA)
Secretary of the Commonwealth of Massachusetts: The Corporate Transparency Act - Federal Legislation Requiring Beneficial Ownership Information Reports
US Chamber of Commerce: What Every Small Business Needs to Know About the Corporate Transparency Act
Wolters Kluwer: Corporate Transparency Act checklist for small businesses