Contributed by: Michael Brocavich, CFP®, MBA
Corporate Transparency Act (CTA) - Report beneficial ownership information to FinCEN by January 1, 2025
Why was this reporting requirement imposed?
The CTA is mainly an anti-money laundering law and was enacted by Congress to protect national interests and better enable efforts to counter illegal acts. Entities that qualify will have to report information to the Financial Crimes Enforcement Network (FinCEN) by January 1, 2025. FinCEN is part of the U.S. Department of Treasury.
Who is impacted?
Every corporation, LLC, or other entity created by the filing of a document with a Secretary of State or similar office under the law of a state or Indian tribe.
What information do I need to provide?
To complete the filing through FinCEN, the below information is required:
Information about the company: Name, EIN, business address, and incorporation date
Information about the company’s beneficial owners: Name, address, and photo documentation of a driver’s license or passport
What do I need to do?
Report the required information to FinCEN before the January 1, 2025, deadline by using FinCEN’s BOI e-filing website. You are able to report this information directly to FinCEN at no charge, or you can authorize an accountant to file on your behalf.
For those that have created an entity this year, there is a requirement to file within 90 days of creation.
What resources are available?
The following resources are available through FinCEN’s website:
What happens next?
We’re aware of the pending legal challenges related to the CTA, including the recent ruling by the U.S. District Court for the District of Alabama. Under our understanding, the CTA reporting requirements still stand as-is.
Questions?
If you have any questions about the requirements for your specific situation, we encourage you to consult with your attorney.
Michael Brocavich, CFP®, MBA is a CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® He has an extensive background in both personal and corporate finance.
The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Michael Brocavich and not necessarily those of Raymond James.
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