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Navigating the Corporate Transparency Act: What You Need to Know

At Swingle, Van Egmond & Heitlinger, we understand the importance of staying informed about regulatory changes that impact businesses. One such change is the Corporate Transparency Act (CTA), which introduces new reporting requirements for certain entities. In this blog post, we’ll explore the key aspects of the CTA and how it may affect your business.
Understanding the Corporate Transparency Act
The Corporate Transparency Act, enacted as part of the National Defense Authorization Act, is designed to address and prevent money laundering, terrorism financing, and other forms of illegal financial activity. It requires certain entities, primarily small and medium-sized businesses, to report beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN).
Reporting Deadlines and Requirements
Entities subject to the CTA, known as “Reporting Companies,” must comply with specific reporting deadlines based on their formation date. New Reporting Companies formed between January 1, 2024, and December 31, 2024, have 90 days after formation to file a FinCEN report. Existing Reporting Companies formed before January 1, 2024, must file by January 1, 2025. Additionally, all information changes or updates must be reported within 30 days.
Entities Subject to Reporting Requirements
Reporting Companies include corporations, limited liability companies (LLCs), and other entities formed by filing with a Secretary of State or equivalent official. Non-U.S. companies registering to do business in the U.S. are also subject to the CTA. While there are exceptions for certain regulated entities, many businesses will need to comply with the reporting requirements.
Defining Beneficial Owners
A beneficial owner is any individual who directly or indirectly owns or controls at least 25% of the company’s ownership interests or exercises substantial control over the company. This definition includes individuals with senior officer roles or significant influence over important decisions, regardless of their equity ownership.
Reporting Process and Penalties
Reports to FinCEN must include general company information and details about beneficial owners, such as legal names, addresses, dates of birth, and unique identifier numbers. Failure to comply with the CTA’s reporting requirements can result in civil penalties, criminal fines, and imprisonment.
How We Can Help
At Swingle, Van Egmond & Heitlinger, we understand the complexities of regulatory compliance and are here to assist you every step of the way. Colleen Van Egmond Delahanty and our team are dedicated to helping businesses navigate the CTA and ensure timely and accurate reporting.
Staying compliant with the Corporate Transparency Act is essential for businesses to avoid penalties and maintain transparency in their operations. With our expertise and dedication to client service, Swingle, Van Egmond & Heitlinger is your trusted partner for navigating regulatory changes and protecting your business interests.
For more information or to discuss your compliance needs, please contact us at (209) 522-2211.

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