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What Members Need to Know About the Corporate Transparency Act
The Corporate Transparency Act (CTA) is a federal law that requires certain businesses to report information about their owners to the U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN). The CTA was enacted in 2021 to help prevent and fight money laundering, tax fraud, and terrorist financing. The CTA applies to corporations, limited liability companies, and other similar entities that are registered or created to do business in the U.S. A Beneficial Ownership Information (BOI) report must be filed with FinCEN.
Deadlines:
1. A reporting company created or registered to do business before January 1, 2024, will have until January 1, 2025 to file its initial beneficial ownership information report.
2. A reporting company created or registered on or after January 1, 2024, and before January 1, 2025, will have 90 calendar days after receiving notice of the company’s creation or registration to file its initial BOI report.
3. Reporting companies created or registered on or after January 1, 2025, will have 30 calendar days from actual or public notice that the company’s creation or registration is effective to file their initial BOI reports with FinCEN.
Detailed information is available at fincen.gov/boi. The BIA recommends speaking to your legal counsel to ensure compliance.