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The Corporate Transparency Act (CTA) and Beneficial Ownership Information (BOI) Reporting

Richard W. Arnold



Introduction

Arnold Gruber, Ltd., Attorneys at Law, is committed to providing our clients with the latest and most relevant legal guidance. In this article, we discuss the recently enacted Corporate Transparency Act (CTA) and its implications for businesses. The CTA mandates that non-exempt businesses file a Beneficial Ownership Information (BOI) report this year, identifying individuals who directly or indirectly own or control a company. Failure to comply with this requirement can result in significant federal fines. We will outline the key aspects of the CTA, the importance of compliance, and how our firm can assist you in navigating these new regulations.


Understanding the Corporate Transparency Act (CTA)

The Corporate Transparency Act (CTA) was enacted to enhance transparency in corporate ownership and combat illicit activities such as money laundering, terrorist financing, and tax evasion. The CTA requires certain businesses to disclose information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN).


Key Elements of the CTA:

  • Beneficial Ownership Information (BOI) Report:

    • Non-exempt businesses must file a BOI report with FinCEN.

    • The report must include information about individuals who own or control at least 25% of the company or exercise significant control over the company.

  • Information Required:

    • Full legal name

    • Date of birth

    • Residential or business address

    • Unique identifying number from an acceptable identification document (e.g., passport, driver’s license).

  • Exempt Entities:

    • Certain entities are exempt from reporting, including publicly traded companies, banks, credit unions, and entities already subject to similar federal reporting requirements.


Implications of Non-Compliance

Non-compliance with the CTA can lead to severe penalties. The federal government can impose fines of $500 per day for each day a report is late. Persistent non-compliance can also result in criminal penalties, including imprisonment.


Benefits of Legal Assistance

Given the complexities of the CTA, businesses can greatly benefit from seeking legal assistance to ensure compliance. Arnold Gruber, Ltd., offers specialized services to help clients navigate these new requirements.


How We Can Help:

  • Expert Guidance:

    • Our team of experienced attorneys can provide detailed guidance on the CTA and its requirements.

    • We offer personalized consultations to help you understand which individuals must be reported and what information is needed.

  • Compliance Assistance:

    • We assist in the preparation and submission of the BOI report to FinCEN, ensuring accuracy and timeliness.

    • Our compliance checklists and tools help you stay on track with reporting deadlines.

  • Risk Mitigation:

    • We help you identify and address any potential compliance risks within your organization.

    • Our proactive approach minimizes the risk of fines and legal consequences.

  • Ongoing Support:

    • We offer continuous support and updates on any changes to the CTA regulations.

    • Our team is available to address any questions or concerns you may have throughout the reporting process.


Conclusion

Compliance with the Corporate Transparency Act (CTA) is crucial for non-exempt businesses to avoid substantial fines and legal repercussions. Arnold Gruber, Ltd., is dedicated to helping our clients understand and meet their reporting obligations. By leveraging our expertise, businesses can ensure full compliance with the CTA, protect their interests, and focus on their core operations.

For more information or to schedule a consultation, please contact us at (330) 563-4149.

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Arnold Gruber, Ltd., Attorneys at Law, 4580 Stephen Circle, NW, Suite 101 Canton, OH 44718 (330) 563-4149

Uniontown Office, 12370 Cleveland Ave NW, Uniontown, OH 44685 (330) 699-6703

© 2024 by Arnold Gruber, Ltd., Attorneys at Law

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