Corporate Transparency Act (CTA) Update: What You Need to Know
CTA – Understanding the Latest Developments
The implementation of the Corporate Transparency Act (CTA) has faced legal challenges, but recent court decisions have again lifted nationwide injunctions. As a result, the Financial Crimes Enforcement Network (FinCEN) has reinstated compliance requirements for reporting companies.
New Deadline for Beneficial Ownership Reporting
Many businesses must file their Beneficial Ownership Information (BOI) reports by March 21, 2025. If your company previously had a deadline on or before February 19, 2025, you now have 30 days to submit your initial, updated, or amended BOI report.
Who Needs to File?
If your company falls into any of these categories, you must comply:
- Existing Reporting Companies: Formed before January 1, 2024
- New Reporting Companies: Formed between January 1, 2024, and February 19, 2025
- Companies Requiring Updates or Corrections: If an amendment was due before February 19, 2025, it must now be filed within 30 days
Some companies granted an extension due to disaster relief still have later deadlines. If your business is exempt under CTA regulations, these exemptions remain unchanged.
Legal and Compliance Implications
While lawsuits challenging the CTA are ongoing, the law is fully in effect. The new U.S. administration has indicated potential modifications to ease the burden on small businesses, including deadline adjustments, but no official changes have been made.
Failure to comply with BOI reporting requirements can result in severe penalties, including felony charges. Ensuring timely filing is crucial for maintaining compliance.
Need Assistance?
If you need help with your BOI filing or have questions about compliance, please get in touch with us. Our team can guide you through the process and connect you with trusted professionals to ensure your business meets all regulatory requirements.