NEW LAW IMPACTING BUSINESS OWNERS

If you are a business owner, you have probably heard about the Corporate Transparency Act and the possibility of getting fined for not complying with the law.  Therefore, we would like to keep you informed and in compliance to avoid any penalties. This article outlines a few things that you need to know.

The Corporate Transparency Act is a new law that aims to crack down on financial crimes and promote transparency in the business world. The law requires businesses to disclose their beneficial ownership information to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN).

This is not a time to panic, the Corporate Transparency Act goes into effect on January 1, 2024. This means that reporting companies that are already in existence on the effective date must file their initial reports within one year. However, if your business was created or registered after the effective date, you still have 30 days to file your reports. 

Also, your reports must be updated within 30 days of any change to the beneficial ownership. This can include things like selling your business, going through a merger or acquisition, or even in the unfortunate event of a death of one of the owners. It’s vital to keep this information accurate and up-to-date. If you become aware of or have reason to know that the information previously filed is inaccurate, make sure to update it within 30 days.

As a business owner, this is just one example of how you need to stay informed and in compliance with the ever-changing laws and regulations. It may seem overwhelming, but taking the time to understand and follow these requirements will save you from potential headaches down the line.

So, don’t panic, stay informed, and make sure to stay on top of your beneficial ownership information reports. Compliance can be a bit of a hassle, but it’s a small price to pay for transparency and ensuring the integrity of your business.