The federal government counted down to “Happy New Year” by starting another countdown clock under the Corporate Transparency Act. An estimated 32 million small businesses formed prior to 2024 have until December 31, 2024 to file their beneficial ownership information reports (BOIR), and an estimated 5 million small businesses that are formed in 2024 have only 90 days from formation to file. Penalties for failure to comply with the CTA can be severe: civil penalties of $500 per day, criminal fines of up to $10,000, and even potential imprisonment for up to two years.
Reporting companies can now file their BOIR here. Beneficial owners, company applicants, and reporting companies (after filing their initial BOIR), can apply for a FinCEN identifier here.
For more information about the CTA, including a comprehensive overview of the CTA and a compliance checklist, check out the Morris, Manning & Martin, LLP Corporate Transparency Act Task Force's website here.
