The Corporate Transparency Act: 4 Facts that Small Businesses Should Know

As of January 1, 2024, the Corporate Transparency Act (“the Act”) requires many businesses to report certain information about their beneficial owners (BOI) to the Financial Crimes Enforcement Network (FinCEN), which is a division of the U.S. Department of Treasury. Although this is a one-time filing, businesses need to be aware of the Act, their responsibilities under the Act, and potential repercussions of failing to comply with the Act.

We have a wealth of experience handling the various legal needs of business clients in various industries, including all relevant compliance issues. An Arizona business lawyer at Provident Law® can advise you of your legal rights and responsibilities under the state and federal. Together, we can ensure that you are compliant with all laws and regulations, as well as handle any unexpected legal matters as they arise.

4 Facts About the Corporate Transparency Act

While there are many factors involved, here are four facts that you should know about the Corporate Transparency Act.

1. Only some companies must report BOI to FinCEN. Your company may need to report BOI to FinCEN if it is a corporation, an LLC, or otherwise created in the U.S. with a secretary of state or any similar office under the law of any state or Indian tribe. A foreign company registered to do business in any state or Indian tribe by such a filing is also subject to the BOI reporting requirement. However, the Act names 23 different types of companies that are exempt from the BOI reporting requirement, including publicly traded companies, nonprofit corporations, and some large operating companies.
2. The due date for reporting BOI differs. FinCEN began accepting BOI reports on January 1, 2024. However, the deadline for submitting BOI reports differs according to when your business was formed, as follows:
   1. If your business was formed before January 1, 2024, you have until January 1, 2025, to report BOI.
   2. If your business is formed in 2024, you have 90 calendar days to report BOI after receiving actual or public notice that your company’s creation or registration has gone into effect, whichever is earlier.
   3. If your business is formed on or after January 1, 2025, you must report BOI within 30 calendar days after receiving actual or public notice that your company’s creation or registration has gone into effect.
   4. If your company’s BOI changes or the information you reported is incorrect, you must report any changes or make any corrections to the previously submitted BOI within 30 days.
3. You only must report BOI once. The Act does not create an annual or periodic reporting requirement for affected businesses. Once a business has reported BOI, there are no further reporting requirements, unless there are changes or corrections to be made to previously reported information.
4. There is no fee for reporting BOI to FinCEN, which must be done electronically.

Contact Us for Assistance with Your Business Law Issue Today

Business law issues are technical and always changing. Therefore, be intentional about who you trust to resolve legal matters concerning your business. We are ready to answer your questions about the Corporate Transparency Act or any other business law issue. The business lawyers of Provident Law® have over 250 years of combined legal experience representing business clients in various legal matters. Our goal is to build a long-term relationship with you as we work together to proactively address and solve your most complex legal problems. Contact a business lawyer today by calling (480) 388-3343 or reach out to us online to set up a time to see what we can do for you. We look forward to working with you.