The Corporate Transparency Act is Here

The Corporate Transparency Act (“CTA”) went into effect January 1, 2024. The CTA requires that certain entities (including LLCs, corporations, and limited partnerships) submit information about their owners and any other individuals who have substantial control of the company in a report called a Beneficial Ownership Information Report (“BOI Report”).

The Blum Firm is prepared to help clients meet the compliance requirements of the CTA, including filing the necessary information with the Financial Crimes Enforcement Network (“FinCEN”). We will assist you in evaluating your reporting requirements, including who must be reported as a beneficial owner. Some initial determinations may be complex, so it is best to start this process soon to set up procedures to timely and accurately update the relevant information that must be reported. For entities formed or registered to do business in the U.S. before January 1, 2024, the initial reports must be filed with FinCEN by January 1, 2025. New entities created in 2024 must file initial BOI Reports within 90 days of formation. Beginning January 1, 2025, new entities will have just 30 calendar days to file their initial BOI Report.

You should continue to plan for CTA Compliance despite the recent case (National Small Business United v. Yellen, No. 5:22-cv-01448 (N.D. Ala.)), which declared the CTA unconstitutional. FinCEN addressed the court’s ruling in a notice on March 4, 2024, stating that the ruling only applies to the plaintiffs in the case (the individual, the National Small Business Association, and its members). We will continue to monitor the developments in this case, but for the time being, it is advisable to move forward under the assumption that the CTA and its filing requirements will remain in effect.

Please contact us if you would like our assistance regarding CTA Compliance and the impact on your entities.

Please be aware of scams and fraud regarding the CTA and personal information. 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.