Important Update: Federal Reporting Obligations Under the Corporate Transparency Act
You likely saw a post from us back in January 2024 informing you of the Corporate Transparency Act (“CTA”). We are writing again to make sure you are aware of the CTA Federal reporting obligations this year that may apply to you.
The Corporate Transparency Act requires all foreign and domestic corporations, LLCs, limited partnerships, and other entities created through a government filing (subject to certain exemptions) to report personal information for key personnel – including any individual, entity, or trust that owns a 25% or greater ownership interest in, or who exercises substantial control over, the company – to the Financial Crimes Enforcement Network (“FinCEN”). This reporting obligation, known as the Beneficial Ownership Information Report (“BOIR”) filing must be completed by December 31, 2024. For more information, visit www.fincen.gov/boi.
This law is designed to assist law enforcement with its efforts to combat illegal money laundering and prevent financial crimes by promoting transparency in corporate entity structures and ownership.
If you have a corporate entity as to which this new law applies such as an LLC and would like us to make this initial filing of the BOIR for you, please contact our office at (617) 716-0300. We charge a $750 flat fee for the first entity filing and an hourly rate for any additional entity filings.
If you do not want us to make this filing for you, please be advised that you will need to make the initial filing yourself by December 31, 2024. Applicable fines and penalties for non-compliance will likely apply, including civil penalties of up to $500 per day as well as potential criminal consequences, including imprisonment for up to two years and a fine of up to $10,000.
DISCLAIMER: We do not assume responsibility for your company’s ongoing compliance obligations under the CTA unless we are separately engaged in the future to assist with specific filings.
We are here to help.
If you have any questions about the Corporate Transparency Act reporting requirements or would like our assistance with obtaining a FinCEN identifier or preparing a FinCEN BOI report, please reach out to John Zurek, Associate Attorney, at (617) 716-0300 or by email to [email protected].
DISCLAIMER: The information provided herein is made available for general informational purposes only and is not intended to constitute specific legal, financial or business advice, or to be a substitute for advice from qualified counsel or other advisers. Squillace & Associates, P.C. has a policy of entering into attorney-client relationships with its clients only in accordance with certain procedures, which include executing an engagement letter and addressing conflicts of interest. You agree that your receipt of this information does not create an attorney-client or other fiduciary relationship between you and Squillace & Associates, P.C.