The Corporate
Transparency Act

Passed in 2021, the CTA requires individuals who directly or indirectly own or control a qualifying company to report their Beneficial Ownership information (BOI) – their identifying information, — to the Financial Crimes Enforcement Network (FinCEN).

This new legislation will aid the US Government in its efforts to prevent offenders from hiding or benefitting from fraudulent schemes.

97% of businesses in the United States will be required to file a BOI.

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BOI compliance
is required for

Domestic Reporting Companies created in the United States pursuant to a state filing

Foreign Reporting Companies registered to do business in the United States

There are 23 exemptions for BOI reporting.

The majority of businesses will need to file a BOI report; however, there are more than 20 exemptions. The reason for the exemptions is that some organizations are already reporting the information required by BOI – examples include Banks, Publicly Traded Companies, and many investment advisor-type firms.

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When Companies Must File

All qualifying reporting companies that were created or registered before January 1, 2024, must file by January 1, 2025.

Any qualifying reporting company that is created or registered after January 1, 2024, will have 90 days to file its initial BOI report with FinCEN.

97%

97% of businesses
in the United States
will be required
to file a BOI.

32M

Over 32 million
initial BOI
reports will be
filed in 2024.

An estimated
5 million initial reports
will be filed during
each following year.

14M

Approximately
14 million updated
reports will be filed in
each subsequent year.

Failure to report may result in penalties

The acts of providing false information or the failure to report or update beneficial ownership information may result in significant penalties.

$591

The civil penalty for a violation is a minimum $591 per day.

$10,000

Criminal penalties include fines of $10,000.

2 Years

Criminal penalties may include imprisonment of up to two years.

If a report is filed with inaccurate information, and the reporting company did not have actual knowledge that the information was incorrect, they will be given a 90-day safe harbor to submit an accurate report.

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All you need to know about BOI Reporting

The Corporate Transparency Act