The Corporate Transparency Act (CTA), effective January 1, 2024, brings significant changes for small businesses in the U.S. It mandates that entities created or registered on or after this date must report beneficial owner information to the Financial Crimes Enforcement Network (FinCEN) within 30 days of creation. Business created prior to 2024 also have reporting requirements.
Where, When, & How?
We all need to know right? Go to https://www.fincen.gov/boi Download the Small Entity Compliance Guide
Here’s a concise guideline on what small business owners should do:
1. **Determine Reporting Obligation:**
– Small businesses should assess whether they fall under the reporting requirements by referring to the Corporate Transparency Act checklist
2. **Beneficial Ownership Disclosure:**
– Reporting companies must disclose personal information of each beneficial owner and company applicant according to the Final Rule
3. **Filing Reports:**
– Newly created or registered companies must submit reports to the U.S. Beneficial Ownership Information Registry within 90 calendar days
4. **Stay Informed:**
– Regularly check for updates and guidance from reliable sources to ensure compliance with evolving regulations. Click here for FAQ
5. **Be Aware of Frauds:** yes already
– Alert: FinCEN has been notified of recent fraudulent attempts to solicit information from individuals and entities who may be subject to reporting requirements under the Corporate Transparency Act. The fraudulent correspondence may be titled “Important Compliance Notice” and asks the recipient to click on a URL or to scan a QR code. Those e-mails or letters are fraudulent. FinCEN does not send unsolicited requests. Please do not respond to these fraudulent messages, or click on any links or scan any QR codes within them.
Small business owners should prioritize understanding and adhering to the Corporate Transparency Act to avoid potential legal consequences and safeguard their operations.
For additional information and resources for small business, please contact us at the Trinity Valley Small Business Development Center – SBDC – TVCC – Serving Henderson, Anderson, Van Zandt, Rains, and Kaufman Counties.
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Trinity Valley SBDC is a partnership program with the U.S. Small Business Administration, the State of Texas, and Trinity Valley Community College. Advising services are offered by Trinity Valley SBDC without regard to race, color, age, national origin, religion, sex, or disability. Special provisions will be made for limited English-speaking individuals and those with disabilities. Those interested may contact us at 903-675-7403.
The North Texas Small Business Development Center Network is funded in part through a Cooperative Agreement with the U.S. Small Business Administration and Dallas College. The North Texas SBDC is an Accredited Member of the Association of Small Business Development Centers. SBDCs are supported by the U.S. Small Business Administration and extended to the public on a non-discriminatory basis. The SBA cannot endorse any products, opinions or services of any external parties or services. Reasonable accommodations for persons with disabilities will be made if requested at least two weeks in advance. Language assistance services are available for limited English proficient individuals.
All opinions, conclusions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the U.S. Small Business Administration or other funding partners.
🌐 Sources
- FinCEN.gov U.S. Beneficial Ownership Information Registry Now accepting Reports – Financial Crimes Enforcement Network
- U.S. Department of Treasury
- Schwab – The Corporate Transparency Act and Your Small Business
- Wolters Kluwer – Corporate Transparency Act checklist for small businesses
- Morgan Lewis – Corporate Transparency Act: Beneficial Ownership Reporting Requirements
- U.S. Chamber – Corporate Transparency Act — What You Need to Know