The federal Corporate Transparency Act (CTA) which took effect on January 1, 2024, (NOW EXTENDED until January 13, 2025) attempts to hinder money laundering, tax fraud, terrorism financing, and other financial crimes through shell or front companies.

 

It requires most small businesses (under 5 million in gross receipts) to report beneficial ownership of 25% or more to the US Treasury Department of Financial Crimes Enforcement Network. Businesses are required to file have until December 31, 2024 to file. (EXTENDED UNTIL January 13, 2025) New companies started after January 1, 2024 have 90 days to file. Failure to report could result in penalties of up to $500 per day up to $10,000. Non-profit organizations, banks, credit unions, inactive entities, sole proprietors, plus others types of organizations are exempt from filing. 

 

Here is the site to file this information https://boiefiling.fincen.gov/   I filed our company myself and was rather easy. The only thing to be aware of is that you will need to upload a copy of the passport or driver's license for all business owners. You will not have a FINCen Identifier number yet, just click "request to receive a FinCEN identifier" under question # 3, skip any future questions that ask for a FinCen number. You may want to speak with your accountant or attorney on this filing.