Action Required for Business Owners: Corporate Transparency Act Compliance Deadline Approaching—Avoid Fines and Legal Risks

Upcoming Compliance Deadline Under the Corporate Transparency Act: What Business Owners Need to Know

The compliance deadline for filing your business’ Beneficial Ownership Information Report pursuant to the Corporate Transparency Act (CTA) is fast approaching. Enacted to combat financial crimes and enhance transparency within business operations, the CTA requires significant disclosure from businesses about their beneficial owners. Here's what you need to know:

Understanding the Corporate Transparency Act (CTA)

The CTA mandates that certain U.S. businesses report detailed information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN). This federal initiative aims to prevent money laundering, fraud, and other illicit activities by making business ownership more transparent.

The Case of National Small Business United v. Yellen

In National Small Business United v. Yellen, a legal challenge questioned the constitutionality of the CTA, arguing it was overly broad and infringed on states' rights. The court's decision, however, upheld most of the CTA’s provisions, granting only a narrow exemption to members of the National Small Business Association based in Alabama. This ruling emphasizes that the vast majority of U.S. businesses will still need to comply with the CTA’s reporting requirements.

Who Needs to Comply?

The CTA applies to a wide array of business entities, including corporations and limited liability companies that are either formed in the United States or foreign entities doing business in the U.S.

Compliance Deadline and Penalties

The deadline for compliance is fast approaching. Businesses formed before January 1, 2024, will have until December 31, 2024, to file their initial reports.  However, businesses formed after January 1, 2024 need to report within 30 days of their formation. Failure to comply can result in severe penalties, including civil fines of up to $500 per day and potential criminal charges, underscoring the urgency for businesses to act swiftly.

We Can Help

At Tyler Law, LLP, we specialize in assisting businesses navigate the complexities of the CTA. Our beneficial ownership filing service is designed to simplify the compliance process, ensuring that your business meets its legal obligations without stress. We provide comprehensive support, from identifying your reporting requirements to submitting your filings accurately and on time.

The implementation of the CTA represents a significant shift in the regulatory landscape for U.S. businesses. With the compliance deadline nearing, it is critical for business owners to understand their obligations and take action. Procrastination could lead to hefty fines and legal complications.

Don’t navigate this alone—contact Tyler Law, LLP today to ensure that your business is prepared and compliant. Together, we can secure your business’s future and protect it from the repercussions of non-compliance. Click the button below.