This law is titled the Corporate Transparency Act (“CTA”) and affects all companies doing business in the United States. It also has reference to registering beneficial ownership information with the U.S. Treasury Department’s Financial Crimes Enforcement Network (“FinCEN”).

Any existing company as of January 1, 2024 has until January 1, 2025, to register. Any newly created or newly registered company in 2024 has ninety days to file.

This is not an annual requirement, but anytime a filer (the company) needs to update or correct information, then a filing update must be done. An example of an update is if any information is changed when doing an annual Secretary of State statement of information.

Generally, reporting companies must provide four pieces of information about each beneficial owner:

  1. name
  2. date of birth
  3. address
  4. the identifying number and issuer from either a non-expired U.S. driver’s license, a non-expired U.S. passport, or a non-expired identification document issued by a State (including a U.S. territory or possession), local government, or Indian tribe. If none of those documents exist, a non-expired foreign passport can be used. An image of the document must also be submitted.

The company must also submit certain information about itself, such as its name(s) and address. In addition, reporting companies created on or after January 1, 2024, are required to submit information about the individuals who formed the company (“company applicants”).

FinCEN is committed to providing America’s small businesses with the resources and information they need to make filing as quick and easy as possible. FinCEN’s Small Entity Compliance Guide walks small businesses through the requirements in plain language. Filers can also view informational videos and webinars, find answers to frequently asked questions, connect to the contact center, and learn more about how to report at www.fincen.gov/boi.

We are providing some reference materials for review.

For new companies, please contact us ASAP to assist preparing the initial report.
For existing companies, we will be offering assistance this summer, after tax season.

I can be reached at Bruce@CannabisCPA.Tax or 818-225-8022.