Stay Compliant with the Corporate Transparency Act: Your Business's January 1, 2025 Deadline is Approaching
The Corporate Transparency Act (CTA), which went into effect January 1, 2024, represents a significant shift in federal compliance requirements for businesses across the United States. As a law firm dedicated to guiding businesses through complex legal landscapes, we want to ensure you’re fully prepared to meet these new obligations. This blog post will break down what the CTA means for your business and how we can help you remain compliant, avoiding penalties, and securing your business's future.
What is the Corporate Transparency Act?
The Corporate Transparency Act is part of the broader Anti-Money Laundering (AML) reforms that aim to prevent illicit activities such as money laundering, terrorism financing, and tax evasion. Under this law, many companies will now be required to report their “beneficial ownership” information to the Treasury Department’s Financial Crimes Enforcement Network (FinCEN). This means that if you are an owner or a key controller of a closely-held business entity, your personal information will likely need to be reported to the federal government.
Who is Affected by the CTA?
The CTA applies to a wide range of companies, including small and medium-sized businesses, limited liability companies (LLCs), partnerships and corporations. Experts estimate that over 34 million businesses are impacted. Your business could be exempt if your business has 20 or more full-time employees, earns $5 million plus in gross receipts, and has a physical office within the United States. (Other limited exemptions might apply.).
What Information Needs to Be Reported?
Businesses must submit reports on all beneficial owners—anyone who exercises significant control over the company or owns or controls 25% or more of the entity. These reports will include the owner’s full legal name, date of birth, residential address, and a photo I.D. with a unique identifying number such as a passport or driver’s license number.
Failure to comply can result in severe penalties, including fines of up to $500 per day of non-compliance and potential criminal charges.
How We Can Help You Stay Compliant?
At Pace Johnson Law Group, we specialize in corporate compliance and regulatory law, and our team is fully equipped to guide your business through the new CTA reporting process. Here’s how we can assist you:
Risk Assessment: We’ll evaluate whether your business falls under the CTA reporting requirements and help identify the beneficial owners who must report.
Compliance Strategy: We will help you develop a comprehensive strategy to gather and securely store the required beneficial ownership information.
Ongoing Reporting and Updates: Our team will ensure that your business stays compliant not just for the initial report but for any future changes in ownership or control that need to be updated by continuously keeping you informed and reminded to remain compliant.
Legal Protection: We will protect your business from potential penalties and lawsuits arising from non-compliance by ensuring timely and accurate reporting to FinCEN.
Why Act Now?
The clock is ticking. The CTA penalties start on the first day of 2025, and complying is getting more difficult as the FinCEN website gets overwhelmed. Don’t wait until it’s too late—early planning can help mitigate any potential risks and ensure a smooth transition to compliance.
Pace Johnson Law Group has extensive experience helping businesses navigate complex federal regulations, and we’re ready to assist you. Schedule an appointment today to discuss your company’s unique situation and how we can help you comply with the Corporate Transparency Act.
Schedule an Appointment Today
Contact us today to protect your business and ensure you're in compliance with the CTA. Don’t wait until it’s too late—compliance is key to safeguarding your business and avoiding costly penalties or potential criminal charges. Take proactive steps now to protect your company’s future and secure peace of mind. Let us handle the complexities so you can focus on what you do best—running your business.
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