CTA Compliance Advisors
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If you own an LLC, corporation, or any other entity created by filing a document with a Secretary of State, you may need to file a report.
What Is The Corporate Transparency Act (CTA)?
The Corporate Transparency Act (“CTA”) went into effect January 1, 2024, and requires certain companies (“reporting companies”) that conduct business in the United States to disclose information regarding the company’s beneficial owners, i.e., the individuals who own or control a company, and the entity itself, to the Financial Crimes Enforcement Network (“FinCEN”), which is part of the U.S. Department of Treasury.
Companies created before January 1, 2024, must complete their initial report by the end of 2024.
Failure to adhere to beneficial ownership reporting obligations may lead to civil and criminal penalties including $10,000 fines, penalties of $591 a day, and/or up to two years in jail.
Services
At CTA Compliance Advisors, we offer comprehensive support to help you navigate the complexities of the Corporate Transparency Act (CTA). Our professional team is committed to ensuring your compliance with the CTA filing requirements in a timely, secure, and efficient manner. We provide legal guidance to help you avoid potentially significant penalties.
Our Process
Whom Do We Serve?
Frequently Asked Questions
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Enacted in 2021 and placed into effect on January 1, 2024, the CTA aims to combat illicit activity including tax fraud, money laundering, and financing for terrorism by capturing more ownership information for specific U.S. businesses operating in or accessing the country’s market. Under the new legislation, businesses that meet certain criteria must submit a Beneficial Ownership Information (BOI) Report to the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN), providing details identifying individuals who are associated with the reporting company.
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Companies obligated to report are called “reporting companies.” The list includes LLCs, corporations, or any other entity created by filing a document with a Secretary of State in any state. Your company is a reporting company unless it qualifies for an exemption.
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A beneficial owner is an individual who, whether directly or indirectly, exerts substantial control over the reporting company, or holds or governs an ownership stake of at least 25% of the company.
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If the individual fits into any of the specified categories, the individual is deemed to be exercising substantial control. These categories include being a senior officer, such as the president, chief financial officer, general counsel, chief executive officer, chief operating officer, or any comparable role. Additionally, if the individual possesses the power to appoint or dismiss specific officers or a majority of directors of the reporting company, the individual is considered to be exerting substantial control. Furthermore, if the individual serves as a pivotal decision-maker for the reporting company, the individual is considered to have substantial control.
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For companies created after December 31, 2024, the BOI Report must include information on one or two company applicants. The first is the person directly initiating the submission of the document that establishes or registers the company. The second is the individual primarily responsible for directing or overseeing the filing when multiple individuals are involved in the process. Not all companies will have two company applicants.
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Key details required include the entity’s name, any trade or DBA names, state of formation, federal EIN, ID number from its domicile Secretary of State, the entity’s primary address within the US, full legal name of each beneficial owner, unique identifying number from an acceptable identification document, and a copy of the individual’s driver’s license or passport.
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Existing Reporting Companies:
For companies created or registered to conduct business in the U.S. before January 1, 2024, the reports are due by January 1, 2025.
New Reporting Companies:
For companies created or registered to conduct business in the U.S. on or after January 1, 2024 and before January 1, 2025, the reports are due 90 calendar days after receiving actual or public notice that the company's creation or registration is effective.
For companies created or registered to conduct business in the U.S. on or after January 1, 2025, the reports are due 30 calendar days after receiving actual or public notice that the company's creation or registration is effective.
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Failure to adhere to beneficial ownership reporting obligations could lead to civil and criminal penalties including $10,000 fines, penalties of $591 a day, and/or up to two years in jail.
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BOI Reports need to be updated on two different occasions:
1. A change of information: Any information that has been submitted in a previous report needs to be changed if it is no longer correct. This includes information about the declared beneficial owners as well as all the information given about them, such as names, addresses, and ID numbers.
2. If an error occurs in the information: If there is a typo or incorrect information, then a new report needs to be submitted. In both cases the new report must be submitted within 30 days.
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Twenty-three distinct types of entities are exempt from the reporting obligations for beneficial ownership information. The exemptions include publicly traded companies that meet specific requirements, numerous nonprofits, and certain large operating companies.
Why Us?
CTA Compliance Advisors is an attorney-owned and managed firm that focuses exclusively on CTA compliance. Our goal is to simplify and expedite the Beneficial Owner Information Report (BOIR) filing process for you.
We do the research, so that you don’t have to. We streamline the filing process so that you can remain focused on your day-to-day business. We provide email and telephone support throughout the process. You can feel confident knowing that all personal information that you provide will be hosted in a secure cloud-based portal with SOC2 security and that a licensed attorney will review every filing for accuracy and completeness.
In addition, our firm and our data providers maintain cyber insurance for your protection. We can help you make timely, accurate filings and avoid serious civil and criminal fines and penalties for missing the deadlines. Start your filing today.
Let’s Collaborate
We aim to ease CTA compliance challenges so you can concentrate on your main business.
Reach out to us with any questions.