The Corporate Transparency Act (CTA), which became effective January 1, 2024, requires certain business entities (including corporations and LLCs) to report their beneficial ownership information (BOI) and certain related information to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN).
The reporting requirements may be unfamiliar to small businesses that have not been subject to similar requirements in the past. Therefore, businesses that are considered reporting companies under the CTA should familiarize themselves with their reporting obligations and take steps now to ensure that they will be in compliance by their initial reporting deadline, which for most is January 1, 2025.