By: Amanda N. Sacks, Schloemer Law Firm, S.C.
The Corporate Transparency Act (CTA-get more information about this act in our previous blog) went into effect on 1/1/2024 and requires all US businesses to report information about the individuals who ultimately own or control them. The stated purpose of the CTA is to curb illicit finance and combat money laundering, terrorist financing, corruption, and tax fraud.
Reporting is completed online on the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) website at https://www.fincen.gov/boi. Companies must complete Beneficial Ownership Information (BOI) reports.
Existing Companies (as of 12/31/2023) have one year to file (i.e., report must be filed by January 1, 2025). New Companies (organized 1/1/2024 or later) must file within 90 days of creation or registration.
Beneficial ownership information (BOI) reporting is not an annual requirement. A report only needs to be submitted once, unless the filer needs to update or correct information (e.g. error in initial report, change of ownership, etc.).
The Small Entity Compliance Guide to Beneficial Ownership Information (BOI) Reporting Requirements provides detailed information on these new requirements.
Failure to file reports required by FinCEN can result in steep penalties, including escalating fines ($500 per day up to $10,000 per violation) and possible jail time.
If you would like assistance, please contact your attorney or one of our Wisconsin Business Law Attorneys. The Initial Report Data outlines the information we will need to file the report on your behalf. Note we will need a copy of each owner’s Driver’s License (or other acceptable ID).
Schloemer Law Firm, S.C. has been in the business of helping Wisconsin businesses with all of their legal needs for over 95 years. We frequently assist Wisconsin businesses throughout the state, and specifically in the areas of Washington County, Dodge County, Ozaukee County, Fond du lac County, West Bend, Hartford, Slinger, Fond du Lac, Sheboygan, Menomonee Falls, and surrounding areas.
Originally published: January 10, 2024.
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- Corporate Transparency Act (CTA) – Federal Government Imposes New Reporting Requirement on Businesses
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Disclaimer: The information contained in this post is for general informational purposes only and is not legal advice. Due to the rapidly changing nature of law, Schloemer Law Firm makes no warranty or guarantee concerning the accuracy or completeness of this content. You should consult with an attorney to review the current status of the law and how it applies to your unique circumstances before deciding to take—or refrain from taking—any action. If you need legal guidance, please contact us at 262-334-3471 or [email protected].