2024 BLOG FOUR

Corporate Transparency Act:

Note:  Corporate Transparency Act – Something to be familiar with if you are creating or “organizing” a new entity.

The new federal Corporate Transparency Act (“CTA”) is a new provision that went into effect January 1, 2024. This Act requires all “reporting companies” to file a report with the Financial Crimes Enforcement Network of the U.S. Treasury (“FinCEN”) that discloses information about the reporting company, all of its beneficial owners, and the reporting company’s “applicant” if the company was formed after 2023.  requires corporations, partnerships and other business entities to submit a form providing certain Beneficial Ownership Information (BOI). If a reporting company fails to file a FinCEN BOI report on or before the report’s due date the U.S. Treasury can fine the company $500 a day until the company files its report. The CTA also has criminal penalties of up to two years in jail for willful violations of the law.  See  Beneficial Ownership Information Reporting | www.FinCEN.gov.  The AZCC provides a detailed discussion about the CTA.