Corporate Transparency Act Alert
The Corporate Transparency Act (CTA) became effective January 1, 2024 and now requires almost all business entities to file (and update) beneficial ownership reports as a part of a national registry. The reports must be filed online at the website for Financial Crimes Enforcement Network (FinCEN), a bureau within the U.S. Department of Treasury, no later than January 1, 2025, for entities formed prior to January 1, 2024, and any entities formed in 2024 must file their reports within 90 days of filing. Information required for the beneficial ownership reports include information and documentation on certain beneficial owners of the entities, as well as information on the entity. THERE ARE SUBSTANTIAL PENALTIES FOR FAILING TO COMPLY WITH THE CTA. The CTA provides that willfully reporting or attempting to report false or fraudulent beneficial ownership, or willfully failing to make updates to the data shall be punished with a civil penalty up to $500/day while the violation continues, up to $10,000 and up to two years in prison.
For more information on the CTA, you can visit the FinCEN’s website: https://www.fincen.gov/boi. You will receive no notices to file from the Oregon/Washington Secretary of State or from the federal government. Cable Huston LLP will not undertake to assist clients with this reporting requirement unless separately engaged to do so. If you would like assistance with CTA compliance, please contact us as soon as possible.