Time's Running Out: Are You Ready to Comply with the CTA by Year-End?
A s the fourth quarter of 2024 kicks off, businesses are running out of time to determine their compliance obligations under the Federal Corporate Transparency Act (CTA) . If your company does not report its beneficial owners by the end of the year, and no exemption applies, penalties may include a $500 per day fine and jail time. What is the CTA? The CTA, which went into effect on January 1, 2024, requires limited liability companies, corporations, and certain other entities to file an online report with the Financial Crimes Enforcement Network (FinCEN) identifying their beneficial owners. The CTA is expected to impact around 32 million existing businesses and around 5 million new businesses each year, with the biggest impact on smaller and unregulated businesses. Who is a Beneficial Owner? Beneficial owners have a 25% or more ownership interest in a company, or exercise substantial control. Substantial control may include holding senior of...