The deadline is quickly approaching for the new reporting requirement under the Corporate Transparency Act (CTA), which took effect on January 1, 2024, and requires companies to report information about their ultimate owners and controllers to the U.S. government. Specifically, unless exempt, all corporations and limited liability companies with less than $5 million in annual revenue or fewer than 20 employees are required to file.
Reports under the CTA must be submitted by December 31, 2024. For businesses registered on or after January 1, 2024, registration is required within 90 days of filing their initial Articles of Organization or incorporation. Our firm is available to assist clients with this filing.
On March 1, 2024, the U.S. District Court for the Northern District of Alabama deemed the CTA unconstitutional. However, the Financial Crimes Enforcement Network (FinCEN) of the U.S. Department of Treasury maintains that all applicable entities must still file their reports, except for those members of the National Small Business Association, the plaintiff in the case.
If you would like our assistance with your company’s CTA report, we are here to help.
Please note that the CTA report is not an annual filing. You will only need to refile if you sell your company or make significant governance changes, such as appointing a new president or senior officer.
The firm’s legal services will include:
- Assessing your CTA reporting obligations by reviewing your corporate structure
- Identifying beneficial owners based on the information you provide
- Filing your company’s initial Beneficial Ownership Information report with FinCEN
Please be aware that the CTA is a complex law, and non-compliance can lead to significant penalties. We are here to guide you through this process and ensure you remain compliant. To receive an engagement letter, please email Emma Rodgers at ERodgers@wsh-law.com and she can send it to you by email or DocuSign upon request. If you have any questions, feel free to reach out to us by phone at (305) 854-0800 or by email, and we can discuss the process in more detail.
