The Corporate Transparency Act (CTA) establishes new reporting requirements for certain business entities to disclose their beneficial ownership information (BOI) to the Financial Crimes Enforcement Network (FinCEN). Compliance with the CTA’s filing deadlines is crucial to avoid potential fines and penalties.
If you have not yet completed initial BOI reporting for your domestic or foreign entity doing business in the U.S., now is the time to act.
BOI Reporting Deadlines
UPDATE: on December 23, 2024 a US District Court granted a stay of the preliminary injunction from December 3, 2024. Companies are once again required to file their BOI reports with FinCEN.
FinCEN acknowledged that the initial deadline of January 1, 2025 might be too tight for some companies that were waiting to file, so they extended the deadline until January 13, 2025 for reporting companies that were created before January 1, 2024. Companies created on or after September 4, 2024 also have until the same January 13 deadline. Companies created after December 3, 2024 have an additional 21 days from their original filing deadline to file their initial BOI report.
The CTA went into effect on January 1, 2024, and any entity that was created or registered before the first of the year has until January 13, 2025, to file their initial BOI reports with FinCEN. Business entities created between January 1, 2024, and January 1, 2025, have 90 days from the date of receiving the actual or public notice of their creation to submit their BOI to Financial Crimes Enforcement Network (FinCEN). Businesses established on or after January 1, 2025, will have just 30 days to do the same.
Failure to comply with the Corporate Transparency Act’s reporting requirements can result in significant penalties, including up to two years of imprisonment and fines upwards of $500 per day for each day a violation continues.
Deadlines for Changes to Beneficial Ownership Information
In addition to the initial filing requirement, businesses are also required to update their BOI reports if there are any changes in their beneficial ownership details. This could include changes to the beneficial owners’ names, addresses or ownership percentages, among other changes. Updated BOI reports must be filed with FinCEN within 30 days of a beneficial ownership information change.
Contact our Team at Sirulnik Law for Help
To ensure compliance with the CTA and avoid penalties for missing filing deadlines, Florida businesses should carefully monitor changes to their beneficial ownership information and stay on top of filing timely reports with FinCEN. Our attorneys at the Law Offices of Alex D. Sirulnik, P.A. are here to help. Contact our office today to ask your questions.
