Your Obligations Under the New Corporate Transparency Act
If you are an owner or officer of a company, a new law is about to take effect that may have serious ramifications for you. The Corporate Transparency Act (“CTA”) goes into effect on January 1, 2024, and you may be required to submit to the federal government certain information about your company and its owners and officers. Attorneys at FGHW are available to help you comply with the requirements of the CTA.
Who Does the CTA Affect?
The CTA requires many businesses to register with the Financial Crimes Enforcement Network (“FinCEN”) and provide certain personal information about each person who exercises control over the business (even if they hold no financial interest in the company). This information will be stored in a nonpublic database accessible to law enforcement and other people with appropriate clearance.
What Does the Registration Process Require?
Registration opens on January 1, 2024. Companies that have been formed prior to this date have one year to make their initial registration. Companies that are formed after January 1, 2024, have thirty days to make their initial registration after the date of formation.Further, should that information change, an update must be submitted to FinCEN within 30 days.
What are the Consequences If My Company Fails to Register?
Failure to timely report can lead to civil penalties of up to $10,000 and/or fines and imprisonment for up to two years, or both. The CTA is intended to combat domestic and international money laundering, terrorist financing through shell companies, corruption, tax fraud, and other criminal activity, and has a vested interest in ensuring that they have accurate information. Consequently, timely compliance with the CTA is critical.
What Should I Do Next?
Please reach out to your attorney at FGHW at 214-361-5600 or contact Christopher Elam at email@example.com if you would like assistance in complying with the requirements of the CTA.