Dear Clients and Friends,
We want to bring your attention to an important new federal law that may affect your business: the Corporate Transparency Act (“CTA”). The CTA expanded anti-money laundering laws and created new reporting requirements for certain companies doing business in the US. We have deferred reaching out about the CTA until now since there are pending court actions that could possibly invalidate the CTA. However, no rulings have yet been issued that would stop the law from applying to the general public, and the year-end deadline for existing companies to comply is fast approaching.
Beginning in 2024, most businesses and entities (including corporations, LLCs, and similar business associations) are required to report information about their beneficial owners and other key personnel (“BOI”) to the Financial Crimes Enforcement Network (“FinCEN”) to create a national database for use by national security and law enforcement agencies to prevent the use of shell companies for criminal activity. This filing must be completed through FinCEN in compliance with their rules and guidelines.
The reporting deadlines are as follows:
1. If your company was created prior to January 1, 2024, you only have until January 1, 2025, to report the BOI.
2. If your company is created in 2024, you must report the BOI within 90 calendar days after receiving actual or public notice that your company’s creation is effective.
3. If your company is created on or after January 1, 2025, you must file the BOI within 30 calendar days after receiving actual or public notice that your company’s creation is effective.
There are significant penalties for non-compliance, both civil and criminal, including up to $500 per day that your entity is not in compliance and up to $10,000 in fines and two years in prison. It is critical to ensure your entity complies with the CTA’s requirements to avoid costly penalties. For more information, click the link below to download a presentation we prepared detailing the deadlines, requirements, potential exemptions, etc. You can also visit the following link for more details: https://fincen.gov/boi.
If you think the CTA may apply to you, please reach out to us immediately so that we can discuss what you need to do to ensure compliance. We are happy to file BOI on behalf of your entities. Because of the deadlines involved and the large number of entities for which we will need to report, please email us at CTA@youngwells.com as soon as possible stating that you want us to file your entity’s BOI to ensure timely filing.
Young Wells Williams P.A.
Attorneys at Law
Ridgeland, MS 39157