{"id":7664,"date":"2024-11-25T10:08:20","date_gmt":"2024-11-25T16:08:20","guid":{"rendered":"https:\/\/www.bgs.com\/blog\/?p=7664"},"modified":"2024-12-19T14:50:25","modified_gmt":"2024-12-19T20:50:25","slug":"corporate-transparency-act-beneficial-ownership-reporting-compliance-is-compulsory","status":"publish","type":"post","link":"https:\/\/www.bgs.com\/blog\/2024\/11\/25\/corporate-transparency-act-beneficial-ownership-reporting-compliance-is-compulsory\/","title":{"rendered":"Corporate Transparency Act Beneficial Ownership Reporting: Compliance is Compulsory"},"content":{"rendered":"\n<p><strong>Update December 19th, 2024<\/strong><\/p>\n\n\n\n<p><em>On December 3, 2024, the U.S. District Court for the Eastern District of Texas issued a nationwide preliminary injunction in Texas Top Cop Shop, Inc., et al. v. Garland, enjoining the federal government from enforcing the Corporate Transparency Act (CTA) and its reporting deadlines. <\/em><\/p>\n\n\n\n<p><em>On December 13, 2024, the Department of Justice (DOJ) filed an Emergency Motion for Stay Pending Appeal in the Fifth Circuit requesting an expedited briefing schedule and a ruling \u201cas soon as possible, but in any event no later than December 27, 2024, to ensure that regulated entities can be made aware of their obligation to comply before January 1, 2025.\u201d Reporting companies should continue monitoring developments in the coming days in case the January 1, 2025 deadline for filing is reinstated.<\/em><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><strong>Ready.<\/strong><\/p>\n\n\n\n<p>Congress passed the Corporate Transparency Act (CTA) in 2020 as part of its initiative to crack down on illicit activities, such as money laundering, commonly associated with shell companies. Under the CTA, many entities formed or registered to do business in the United States will be required to report various information concerning their beneficial owners and decision-makers. The idea behind the law is to unmask the natural persons behind a given entity.<\/p>\n\n\n\n<p>The&nbsp;<a href=\"http:\/\/www.fincen.gov\/\" target=\"_blank\" rel=\"noreferrer noopener\">Financial Crimes Enforcement Network<\/a>&nbsp;(FinCEN), under the direction of the United States Department of the Treasury, has been tasked with preparing the regulations that will govern the beneficial ownership reporting requirement and provide for enforcement. The reporting obligations under the CTA impact hundreds of thousands of entities, including corporations, limited liability companies, and some types of partnerships. The most significant impact will be felt by small and mid-size companies and the individuals who own and operate them, who did not previously have any mandated federal reporting responsibilities.<\/p>\n\n\n\n<p>Entities and individuals subject to these new regulations will be required to submit a beneficial ownership information report identifying each beneficial owner, decision maker, and company applicant. Be ready with your entity\u2019s name, EIN, and copies of photo identification for each beneficial owner and operator of the entity. Note that it is free to file directly with FinCEN.&nbsp;<a href=\"https:\/\/www.bgs.com\/blog\/2023\/09\/19\/risks-of-non-compliance\/\" target=\"_blank\" rel=\"noreferrer noopener\">Penalties for non-compliance<\/a>&nbsp;can yet be avoided. Keep transcripts of your reporting with your other corporate records.<\/p>\n\n\n\n<p><strong>Entities which existed prior to January 1, 2024,&nbsp;<em>and who are not exempt<\/em>&nbsp;have until December 31, 2024, to comply with the reporting requirements.&nbsp;BGS will be providing filing assistance to entities that contact us by December 15, 2024.<\/strong><\/p>\n\n\n\n<p><strong>Set.<\/strong><\/p>\n\n\n\n<p>FinCEN has posted a frequently asked questions page and makes regular updates.&nbsp;<a href=\"https:\/\/www.fincen.gov\/boi-faqs\" target=\"_blank\" rel=\"noreferrer noopener\">Visit their page<\/a>&nbsp;to see if your entity may be exempt from filing and to answer other&nbsp;FAQs.<\/p>\n\n\n\n<p><strong>Go!<\/strong><\/p>\n\n\n\n<p>You can file your report directly&nbsp;<a href=\"https:\/\/boiefiling.fincen.gov\/boir\/html\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a>. Note that any changes to the information must be filed within 30 days at the same link. Barna, Guzy &amp; Steffen, Ltd.\u2019s corporate law practice group continues to closely monitor developments in this area.&nbsp;Please contact me,&nbsp;<a href=\"mailto:cisakson@bgs.com\" target=\"_blank\" rel=\"noreferrer noopener\">Attorney Carole Clark Isakson<\/a>, if you have additional questions and would like to schedule an appointment to connect with our team. To be directed to other helpful legal services that we offer in Minnesota and Wisconsin, such as real estate law,&nbsp;transportation law,&nbsp;employment law, estate planning, litigation,&nbsp;personal injury,&nbsp;or family law, please call our front desk at (763) 780-8500.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Update December 19th, 2024 On December 3, 2024, the U.S. District Court for the Eastern District of Texas issued a nationwide preliminary injunction in Texas Top Cop Shop, Inc., et al. v. Garland, enjoining the federal government from enforcing the Corporate Transparency Act (CTA) and its reporting deadlines. On December 13, 2024, the Department of Justice (DOJ) filed an Emergency Motion for Stay Pending Appeal in the Fifth Circuit requesting an expedited briefing schedule and a ruling \u201cas soon as possible, but in any event no later than December 27, 2024, to ensure that regulated entities can be made aware of their obligation to comply before January 1, 2025.\u201d Reporting companies should continue monitoring developments in the coming days in case the January 1, 2025 deadline for filing is reinstated. Ready. Congress passed the Corporate Transparency Act (CTA) in 2020 as part of its initiative to crack down on illicit activities, such as money laundering, commonly associated with shell companies. Under the CTA, many entities formed or registered to do business in the United States will be required to report various information concerning their beneficial owners and decision-makers. The idea behind the law is to unmask the natural persons behind a given entity. The&nbsp;Financial Crimes Enforcement Network&nbsp;(FinCEN), under the direction of the United&#8230;<\/p>\n","protected":false},"author":14,"featured_media":7670,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[17,212,99],"tags":[73,70,184,109],"coauthors":[54],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Corporate Transparency Act: Comply by 12\/31\/24<\/title>\n<meta name=\"description\" content=\"The Corporate Transparency Act requires many entities to report information about their beneficial owners and decision makers. 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