The Corporate Transparency Act – Are you in Compliance?

April 12, 2024    •    2 min read

As you might be aware, Federal legislation known as the “Corporate Transparency Act” (the “Act”) went into effect as of the beginning of this year. The Act requires many businesses in the U.S. to report certain information, including information concerning their “beneficial owners.” Failure to comply with the Act may result in civil and criminal penalties, including fines of up to $500 per day and up to two years’ imprisonment. Click here for additional background information regarding the Act.

Any corporation, limited liability company, limited partnership or other company formed prior to January 1, 2024 that is required to comply with the Act must submit the required information no later than January 1, 2025. We are prepared to assist you in determining whether and the extent to which you and your companies must comply with the Act and in making the required filings under the Act. If you would like for us to assist you, please reach out to us as soon as possible, but not later than August 31, 2024.(Note that if you have formed a company subject to the Act on or after January 1, 2024, you must report the required information within 90 days after formation, and within 30 days if formed after December 31, 2024. Please contact us as soon as possible for assistance with reporting obligations for newly-formed entities).

For companies having two or fewer owners, we are offering our services on a flat-fee basis, which will include our determination of your reporting obligations and assistance with making any required filings. If you have multiple companies, or more than two owners for a single business entity, please contact us to discuss a fee arrangement.

We assume no responsibility for assisting any individual or company in connection with compliance with the Act unless we are expressly engaged to do so. If we do not hear from you by August 31, 2024 (or within the 90-day reporting window for companies created on or after January 1, 2024) that you will engage our firm, we will assume that you do not wish to engage us for this task. You may visit the Financial Crimes Enforcement Network website (available here) for more information if you choose to comply with the Act without legal assistance.

Should you have any questions concerning this information or your obligations under the Act, please contact us and we will be glad to discuss with you.

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