New Reporting Requirements Under the Corporate Transparency Act: What Small Businesses Need to Know
Print this Article | Send to Colleague
As part of the Corporate Transparency Act (CTA), signed into law on January 1, 2021, small businesses across the U.S. will soon face new reporting requirements aimed at expanding anti-money laundering regulations. Beginning in 2024, many businesses will be required to report their Beneficial Owner Information (BOI) to the Financial Crimes Enforcement Network (FinCEN). This initiative is intended to create a national database to help national security and law enforcement agencies combat the misuse of shell companies for illegal activities.
Who Needs to File?
If you own an S-Corp, C-Corp, Partnership, or LLC, you are likely required to file a BOI report. While there are a few exemptions, most small businesses will need to comply with these new regulations.
Why It Matters
Failure to file the BOI report could result in hefty penalties—up to $591 per day. The deadline to submit your report is January 1, 2025, so it's important to begin preparing now to avoid fines.
How to File
Fortunately, the process to file a BOI report is said to be straightforward. Sources suggest that the filing method should be quick and manageable for most businesses. To assist you, we’ve attached a step-by-step guide for the Online BOI Filing Method. You can also find additional resources and support directly through FinCEN’s portal here.
As we approach the filing deadline, be sure to stay on top of these new requirements and avoid costly penalties by submitting your BOI report on time.
