If you own a business in the U.S., there’s a new federal requirement in 2024 that you can’t afford to ignore. Under the Corporate Transparency Act (CTA) of 2021, 97% of U.S. businesses are now required to file a Beneficial Ownership Information (BOI) report. Failure to comply could result in severe penalties, including hefty fines and potential legal consequences.
So, what does this mean for your business, and how can you ensure compliance? Let’s break it down.
The Corporate Transparency Act (CTA) was passed in 2021 to increase transparency in business ownership and combat financial crimes such as money laundering and fraud. Under this law, most small businesses must disclose who owns and controls the company by submitting a BOI report to the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN).
This reporting requirement aims to prevent bad actors from using anonymous business structures to hide illicit activities. However, it also means that millions of legitimate businesses must now follow these new compliance rules.
Entities Required to File:
- Corporations: Both for-profit and non-profit corporations, unless exempted.
- Limited Liability Companies (LLCs): Including single-member and multi-member LLCs.
- Other Similar Entities: Such as limited partnerships and business trusts.
Exemptions:
Certain entities are exempt from filing, including:
- Large Operating Companies: Those with more than 20 full-time employees, over $5 million in gross receipts or sales, and an operating presence at a physical office within the U.S.
- Regulated Entities: Such as banks, credit unions, and broker-dealers already subject to federal oversight.
- Inactive Entities: Entities that have been inactive for a specified period and meet certain criteria.
Failing to file your BOI report is not something you want to overlook. The penalties for non-compliance include:
Fines of up to $591 per day for failure to file
Civil lawsuits against non-compliant businesses
Criminal penalties, including potential jail time if fines exceed $10,000
These strict enforcement measures highlight the importance of staying compliant and filing your BOI report on time.
How Can We Help?
At Professional Business Solutions, we understand that navigating federal regulations can be overwhelming. That’s why we’re here to help! Our team specializes in business compliance and can guide you through the process of filing your BOI report quickly and accurately so you can focus on running your business without stress.
We’re just a call away! Contact us today for expert support.
Don’t wait until it’s too late! Get started with your BOI filing today.
Stay compliant. Avoid penalties. Protect your business.
