If you have no interest in any business, you may stop reading now and disregard. If, however, you have any interest in a business, please continue reading. We are writing to inform you of significant legal changes brought by the Corporate Transparency Act (CTA), which became law as part of the Anti-Money Laundering Act of 2020. The CTA now requires most U.S. business entities, including LLCs and corporations, to file reports disclosing information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN).
What is Required?
Beginning January 1, 2024, entities formed in or registered to do business in the U.S. must report the following information about their beneficial owners to FinCEN:
- Full legal name.
- Date of birth.
- Current residential or business address.
- Identification numbers (from an acceptable document such as a passport or driver’s license) along with a scanned image of the document.
Who is Required to File?
The CTA applies to most business entities, including:
- Limited liability companies (LLCs)
- Corporations
- Other similar entities registered to do business in the U.S.
Penalties for Non-Compliance
Failure to comply with the CTA’s reporting requirements can result in substantial penalties. The law imposes civil penalties of up to $500 per day for each day the violation continues. In addition, criminal penalties may include fines up to $10,000 and up to two years in prison for willful non-compliance. These penalties underscore the importance of ensuring that your company complies with the CTA’s requirements in a timely and accurate manner.
Our Services
At Keist, Thurston P.C., we are committed to helping our clients navigate the new requirements imposed by the CTA. To assist you in complying with these new regulations, we are offering to handle the registration of your company with FinCEN on your behalf. We will ensure that all necessary documentation is submitted accurately and in a timely manner to avoid any penalties.
We are currently offering this service to our existing clients for a flat fee of $300 per entity. This fee does not include any consultation fees for additional or separate business advice and representation.
Next Steps
To proceed with filing your company’s information, or if you would like more information on the CTA requirements, please contact us by phone at (623) 937-8888 or email at joel@ktolawfirm.com. We recommend taking action as soon as possible to ensure compliance with this new law on or before January 1, 2025. Whether or not you choose to retain us to handle this filing, we strongly urge you not to ignore this issue. The penalties and fees for failing to comply with the Corporate Transparency Act are severe, and we highly recommend that you act promptly. If you prefer not to engage our firm for this matter, we encourage you to complete the registration process yourself or seek other professional assistance to ensure compliance.
We look forward to assisting you in meeting these important legal obligations for your business and ensuring your continued compliance with federal regulations.