Our View from

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Our View from

Canal Street

Business Owners: Corporate Transparency Act; We’re Here to Help

by | Feb 21, 2024 | Businesses

As a business owner, you are working hard, running fast, and doing everything you can to keep your head above water. No matter the industry, challenges appear like whack-a-mole at the fair.

At LCW CPAs, we are committed to being champions for you and your business’ success. When a new federal requirement is announced, we evaluate how we can help alleviate the burden it places on our business clients.

The Corporate Transparency Act – A Brief Overview

The Corporate Transparency Act (“CTA”) was enacted by Congress on January 1, 2021, as part of the National Defense Authorization Act and the associated reporting requirements went into effect on January 1, 2024.

The CTA includes significant reforms to anti-money laundering laws and is intended to help prevent and combat money laundering, terrorist financing, corruption, and tax fraud.

The CTA establishes a beneficial ownership reporting requirement for corporations, limited liability companies, and other similar entities formed or registered to do business in the United States. Beneficial ownership reports must be filed with the Financial Crimes Enforcement Network (FinCEN), a bureau within the US Department of Treasury with the first deadline for reporting to be January 1, 2025.

Note, there are varying deadlines for entities formed in 2024. The US  Chamber of Commerce has organized useful information about the act and the impact to millions of business owners in the United States. Learn more here.

LCW CPAs is Here to Help You with Respect to the Corporate Transparency Act

For many of our clients, the requirements to adhere to the Corporate Transparency Act annual filing requirements are burdensome and complex. As a client, you can count on us to help.

It is important to note that the penalties for non-compliance are both civil and criminal, and are $500 per day up to $10,000, and up to two years imprisonment. Please learn more online at FinCEN’s webpage on Beneficial Ownership Information.

If you would like LCW CPAs to complete the filing of the Beneficial Ownership Information report with FinCEN for your entity(ies) please call our office at 978-689-8822, email us, or contact us to be added to our list. Existing LCW CPAs business clients will be our priority.

It is our plan to start completing these filings for our clients after May 1, except for those clients who have a filing requirement sooner.