To comply with the Corporate Transparency Act (CTA), businesses in the U.S. are required to file beneficial ownership information with the Financial Crimes Enforcement Network (FinCEN). The CTA aims to combat money laundering, terrorism financing, and other illicit financial activities by increasing transparency about who owns and controls companies.
Here’s how you can file online under the Corporate Transparency Act:
Understanding the Corporate Transparency Act: Who Must File?
Who needs to file: Generally, small corporations, limited liability companies (LLCs), and similar entities must file under the CTA, unless they qualify for an exemption. Exemptions may apply to large, regulated companies, or those already subject to specific reporting requirements.
Beneficial owners: You need to report the beneficial owners of the entity. These are individuals who, directly or indirectly, own or control at least 25% of the company or who exercise substantial control over it.
Create or Log Into Your FinCEN Account
Go to the FinCEN’s Filing Portal: As of January 2024, the filing process is managed through the FinCEN Reporting Portal. This is an online platform for submitting beneficial ownership information.
Create an account: If you don’t have an account yet, you’ll need to create one. To do so, you can visit FinCEN’s official site at: https://www.fincen.gov
Once you’re logged in, follow the instructions to file your entity’s beneficial ownership information.
Prepare Required Information
Before filing, make sure you have the following information for both the company and its beneficial owners:
Company information: Legal name, trade name (if applicable), business address, jurisdiction of formation, and taxpayer identification number (TIN).
Beneficial owners: Full legal name, date of birth, residential address, unique identifying number from an official document (such as a passport or driver’s license), and a photograph of the document.
File Your Information
Once you’ve gathered the necessary information, you can input it directly into the FinCEN Reporting Portal.
Review the information carefully before submitting. You’ll also need to confirm the accuracy of the data and provide your signature or authorization for submission.
Submit and Keep Records
After submitting, you will receive a confirmation from FinCEN. Make sure to keep a copy of your submission for your records.
Amendments: If any of the beneficial ownership information changes, you must update the report within 30 days.
Deadlines for Filing for the Corporate Transparency Act
New entities formed after January 1, 2024, must file their information with FinCEN within 30 days of formation.
Existing entities that were formed before January 1, 2024, have until January 1, 2025 to file their information.
Filing Fees and Cost
As of now, there is no filing fee associated with submitting beneficial ownership information to FinCEN under the Corporate Transparency Act. Be sure to check FinCEN’s guidelines and FAQs for the most up-to-date and detailed instructions on the filing process.
If you have questions we are happy to connect you with one of our legal referral partners who can provide guidance on how to comply with this new law.
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