Corporate Transparency Act: Essential Guide to Beneficial Ownership Information Reporting (2024)

Comprehensive guide to the Corporate Transparency Act (CTA) and BOI reporting requirements for 2024. Learn about deadlines, exemptions, and filing requirements for LLCs and corporations.

Corporate Transparency Act: Essential Guide to Beneficial Ownership Information Reporting

Overview of the Corporate Transparency Act 2024 The Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) has established new federal reporting requirements through the Corporate Transparency Act (CTA), commencing January 1, 2024. This legislation mandates most business entities, including corporations and limited liability companies (LLCs), to submit beneficial ownership information (BOI) reports to FinCEN.

Key Reporting Deadlines and Requirements

• New entities formed in 2024 or later: Must file within 90 days of formation
• Existing entities (pre-2024): Must file by December 31, 2024
• Filing platform: Submissions through the Beneficial Ownership Secure System (BOSS)
• Cost: No filing fee applies

Business Exemptions from BOI Reporting Exemptions apply to certain enterprises, specifically:

• Operating companies with more than 20 employees
• Businesses generating over $5 million in annual revenue
• Select additional categories (as specified by FinCEN)

Required Information for Beneficial Ownership Reports For each beneficial owner (individuals owning 25% or more, or exercising substantial control):

• Full legal name
• Date of birth
• Current address
• Government-issued identification number
• Copy of identification document

Purpose and Information Security The collected information will serve law enforcement and national security agencies in their efforts to:

• Combat money laundering
• Prevent tax evasion
• Counter terrorism financing Note: This information remains confidential and is not publicly accessible.

Critical BOI Filing Requirements and Clarifications

1. Single-property LLC owners must file BOI reports
2. Separate reports required for each LLC (multiple LLCs = multiple reports)
3. Street addresses are mandatory
4. Social Security numbers are not required
5. Registered agents are not responsible for filing
6. Self-employed individuals are exempt
7. Updates required when beneficial owners depart
8. Minor children are not considered beneficial owners
9. Professional filing authority (for CPAs/enrolled agents) remains under review
10. Attorney inclusion in reports requires case-by-case evaluation

Ongoing Considerations for BOI Compliance

• Compliance expectations for non-legitimate enterprises
• Role of professional service providers in filing
• Ongoing regulatory interpretations and guidance

To learn more on Beneficial Owner Information Reporting, you can check out the IRS guidelines. Need Help with BOI Reporting? For specific questions about your BOI reporting obligations, please contact me at (657) 413 0211.