Demystifying the Corporate Transparency Act: A Guide for Small Business Owners
Hey there fellow business enthusiasts! Today, we’re unraveling the mystery behind a new law that’s making waves in the entrepreneurial world – the Corporate Transparency Act (CTA). Whether you’re just starting your business adventure or you’ve been in the game for a while, understanding the CTA is crucial.
What’s the Corporate Transparency Act?
Think of the CTA as a new set of rules for businesses. As of January 1, 2024, federal law requires anyone who owns or controls some or all of a registered business (e.g., LLC, S-Corporation, C-Corporation, etc.), you must report certain information, including your identity and those who own or control the company with you.
Are You A “Beneficial Owner”?
If you own 25% or more of a business or you’re the big decision-maker, congratulations, you’re a beneficial owner! If you own a significant chunk of a business – 25% or more – or if you don’t own a ton of shares, but you call the shots or you have substantial control over a business, you’re still a beneficial owner in the eyes of the CTA. If you’re quietly pulling the strings from behind the scenes, guiding the business without everyone knowing, you might still be a beneficial owner.
The Beneficial Owner Inquiry – Getting Started
If you’ve determined you’re a beneficial owner, here’s what you need to do next:
- Gather information about all the beneficial owners in your business.
- If you need or want our help to make this filing, complete our intake form.
- Call or email our office to make an appointment to discuss your filing or we will contact you once we receive your completed intake form and payment.
Potential Penalties for Not Filing or Complying with CTA
Failing, ignoring, or forgetting to submit the inquiry or giving the wrong information could result in civil or criminal penalties, including big fines or even imprisonment.
Don’t Stress! We’re Here to Help Running a business is a huge responsibility. Making regular filings such as these is a part of doing business, but should not be a stressful experience if you plan ahead and stay informed. Feel free to call or email our office if you have any questions or wish to make an appointment with our office. We would be happy to help you make your filing!