Effective as of January 1, 2024, the Corporate Transparency Act (CTA) requires most U.S. small businesses to report detailed information about their owners to the federal government.

Key Requirements:

• Report Beneficial Ownership Information (BOI) to FinCEN.
• Applies to LLCs, corporations, and similar entities—unless exempt.
• New entities formed in 2024 or later must report within 90 days.

Why It Matters:
Failure to comply can result in fines up to $10,000 and even criminal penalties. The goal is to combat money laundering, but the burden falls on small businesses and startups.

Action Steps:

• Identify beneficial owners now.
• File your BOI report on time.
• Consider legal counsel for complex structures or layered ownership.

Pro Tip:
If you're forming multiple LLCs or operating under a holding company, you may need to report separately for each entity.

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