The Corporate Transparency Act, Get Help From Tax Professionals
While there are some details still being worked out, the Corporate Transparency Act (CTA) is a significant development that will affect most companies in the United States. Of course, we hate these unnecessary impediments to running your business as much as you do, but want to keep you informed. The accounting pros at Zen Digits understand the intricacies of this new regulation and are dedicated to guiding your business through its complexities.
Understanding the Corporate Transparency Act (CTA)
The CTA mandates that all “reporting companies” disclose beneficial ownership information (BOI) to the Financial Crimes and Enforcement Network (FinCEN), a sector of the U.S. Treasury. This move, allegedly, is to enhance transparency in the corporate sector. We remain skeptical but they did not ask our opinion.
Who Needs to Comply?
Basically, most companies set up as corporations, LLCs, LLPs, and others formed or registered to do business in the U.S. by filing with a state office. In this case it’s much easier and faster to look at company’s that don’t have to register as that’s a much smaller list.
Who doesn’t have to register? Large operating companies, certain non-profit entities, public companies, banks, and others already under regulatory oversight are on the status quo and do not have to take any action. Large operating companies are defined, at this point, by generating 5 Million or more in revenue, have more than 20 people working for them and have a business connection the United States.
What Do I Need To Do and When?
Existing Entities: If your business was formed before Jan. 1, 2024, you have one year from that date to file your initial BOI report.
New Entities: For businesses formed after Jan. 1, 2024, the initial BOI report is due within 30 days of formation. They are considering a 90 day window.
Reporting companies must submit BOI reports to FinCEN, detailing information about the company and its beneficial owners and applicants. This includes full legal names, dates of birth, addresses, and identification details.
Can I Just Ignore It?
We wish. But failure to comply can result in severe consequences, including civil and criminal penalties, emphasizing the need for meticulous adherence to the Act.
How Can Zen Digits Accounting Help?
At Zen Digits Accounting, we specialize in helping businesses navigate these regulatory waters. Our expertise in the CTA ensures that your business remains compliant, avoiding hefty penalties. We offer personalized guidance, helping you understand your reporting obligations, identifying if you fall under any exemptions, and assisting in the preparation and submission of necessary reports.
Your business’s compliance with the CTA doesn’t have to be a daunting task. With Zen Digits Accounting by your side, you can focus on what you do best – running your business – while we take care of the rest.