Corporate Transparency Act

Brief Description

The Corporate Transparency Act (CTA) is a federal law that requires most corporations, limited liability companies, and any other company created by filing a document with a state to report information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN). It's purpose is to help prevent and combat money laundering, terrorist financing, corruption, and tax fraud.

Reason To Contract Service

It is unlawful for any person to willfully fail to report complete or update beneficial ownership information to FinCEN. Any person violating the reporting requirements of the Corporate Transparency Act is liable for civil penalties of not more than $500 for each day that the violation continues and criminal penalties of imprisonment of up to two years and fines of up to $10,000.

Fee

Flat fee or hourly.

Process

1. Create FinCEN ID (https://fincen.gov/boi)
2. File Beneficial Ownership Information Report using E-Filing system (https://fincen.gov/boi)

Authorities For Further Research

1. Financial Crimes Enforcement Network (https://fincen.gov/boi)
2. 2021 National Defense Authorization Act - Implementing legislation
3. 31 U.S.C. 5336 - Beneficial ownership information reporting requirements
4. 31 CFR 1010.380 - Implementing Regulation

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