As part of DreamSpring's commitment to keeping you informed about critical updates that impact your business, we want to highlight an important new federal requirement. Whether you're an established business owner or just getting started, understanding and complying with the Corporate Transparency Act (CTA) is essential.
What Is the Corporate Transparency Act?
Enacted in 2021, the bipartisan Corporate Transparency Act aims to curb illicit financial activities by increasing transparency around business ownership. The CTA requires many companies doing business in the United States to report information about the individuals who ultimately own or control them to the U.S. government.
Why Is This Important?
Corporate anonymity can enable activities like money laundering, drug trafficking, terrorism, and corruption. By establishing a centralized database of beneficial ownership information, the U.S. government can better prevent these illegal activities and protect law-abiding small businesses.
What Are the Reporting Requirements?
Starting earlier in 2024, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) began accepting beneficial ownership information reports. The key deadlines are:
Existing Companies: Businesses created or registered before January 1, 2024, must file by January 1, 2025.
New Companies: Businesses created or registered in 2024 must file within 90 calendar days of their creation or registration.
How to File |
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Filing your beneficial ownership information report is quick, secure, and free. Here are the steps: 💻 Visit the FinCEN website to access the filing portal.📝 Gather the required information about the individuals who own or control your company. ✅ Submit your report online. |
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Additional Resources
To help you navigate this new requirement, here are some useful resources:
- Beneficial Ownership Information Reporting | FinCEN.gov
- Brochure: An Introduction to Beneficial Ownership Information Reporting
- Video: Overview of Beneficial Ownership Information Reporting
- Small Entity Compliance Guide (101 Guide)
- Answers to Frequently Asked Questions (FAQs)
Staying compliant with these new regulations is crucial for your business’ success and integrity. For more information and personalized assistance, please contact us at DreamSpring!