The Corporate Transparency Act is a federal law that was enacted in 2021. It is aimed at combating illicit activity like tax fraud and money laundering. This legislation places new obligations on businesses that meet certain criteria.
If your business meets any of these criteria, you should consult with an experienced business law attorney at Patrick, Harper & Dixon, who can help you comply with the regulation.
Beneficial Ownership Information (BOI) Reports
According to the Corporate Transparency Act, beneficial owners of businesses that meet the criteria must file a BOI report to the U.S. Department of Treasury.
A government regulations lawyer at our law firm will help guide you through the process of filling out the report to ensure you provide the information required by the law.
Who is a beneficial owner?
The Corporate Transparency Act explicitly defines who counts as a beneficial owner. According to the regulation, you are a beneficial owner if you:
- Have a major influence on decisions in the company
- Have a major influence on the operations of the company
- Own at least 25% of shares in the company
- Have significant control over the company’s equity
Every person who falls into at least one of those categories must file the report with the U.S. government. If your business existed before January 1, 2024, you have until January 1, 2025, to file a report. If the business is created between those two dates, you have 90 days from the formation or public announcement (whichever comes first) to file a report. Any business created after that has 30 days to file.
Information That Must Be Reported
The U.S. government is requiring business owners to report this information to prevent fraud and other financial crimes. Penalties may be applied to beneficial owners who fail to provide the appropriate information.
The iU.S. government is requesting the following information from Beneficial Owners:
- The names of all owners
- The names of all applicants
- Addresses for the above
- Birthdates for the above
- ID numbers for the above
- The jurisdiction of all documents provided
Furthermore, the report must include the legal name, U.S. address, and taxpayer identification number of the business. Finally, the report must include all trademarks owned by the business.
After this information has been provided once, there is no need for regular updates. However, if there is a major change to this information, like a new person becoming a beneficial owner or the address of the business changing, the US government must be promptly updated.
Many of the things that require an updated filing are not necessarily obvious to anyone without a legal background. This is one of the reasons that it is best to have an experienced business attorney assisting you with compliance with the Corporate Transparency Act.
A lawyer from Patrick, Harper & Dixon will monitor changes in your company and determine whether you need to update your report. If you need to file an update, we will make sure it is completed on time and accurately.
Contact Patrick, Harper & Dixon for Business Law Representation in Hickory, NC
If you haven’t complied with the Corporate Transparency Act yet, time may be running out. Contact our law firm today to schedule a consultation with a business law attorney who can help you comply with this new business regulation.