Corporate Transparency Act Reporting for Small businesses

Disclaimer

 This guide addresses the basic reporting requirements for most small businesses under the Corporate Transparency Act. It does not include every consideration. This guide was last updated on December 12, 2023 and some of the information may have since changed. The information in this guide is not legal advice and is not intended to be relied upon as legal advice. If you have a legal issue, you should not rely on this information and instead speak to an attorney.

The Basics 

• Most small businesses need to report information about the business and its “beneficial owners” to the US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN);

• Corporations, LLCs, and other businesses created by filing papers with a Secretary of State or similar agency need to report, unless they are exempt. A list of exempt businesses (mostly in the financial services sector) can be found on page 4 of FinCEN’s Small Entity Compliance Guide.

• “Beneficial owners” are individuals who exercise substantial control over the company or own or control 25% or more of the ownership interests of the company;

• If the business was created before January 1, 2024, the business must file the “Beneficial Ownership Information” report by January 1, 2025;

• If the business is created after January 1, 2024 and before January 1, 2025, the business has 90 days from the notice of creation to file the report (after January 1, 2025, business’s have 30 days to report);

• The report can be found on the Financial Crimes Enforcement Network website;

• The report must include the following information about the business:

  • The business’s full name;

  • Any trade names the business uses: their registered d/b/a (“doing business as”) and names used informally;

  • The business’s street address;

  • The state of formation; and

  • The business’s EIN/TIN.

• The report must include the following information about beneficial owners:

  • Full legal name;

  • Date of birth;

  • Complete residential address;

  • The unique identifying number from one of the following nonexpired documents: a state-issued driver’s license, a US passport issued by the US government, a state, local government, or Indian tribal identification document issued for the purpose of identifying the individual, or a foreign government-issued passport, if the individual does not have any of these other documents; and

  • an image of the identification document bearing the unique identification number.

• Any changes to the information reported must be reported within 30 days of the change.

Consult a Small Business Attorney

An experienced attorney can determine your business’s specific responsibilities and advise you about how to efficiently meet them. Contact Pepitone Law for a consultation.