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The Corporate Transparency Act

National Tax Advisory Group | Prager Metis | Nov 12, 2024

The Corporate Transparency Act (CTA) became effective on January 1, 2024. Its purpose is to combat illicit activity, such as tax fraud and money laundering, by capturing ownership information for businesses operating in the U.S. The CTA requires businesses to submit a Beneficial Ownership Information (BOI) Report to the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN), providing details identifying specific individuals associated with the reporting company.

The deadlines to file this report are as follows:
• Companies formed before January 1, 2024, have until December 31, 2024, to file
• Companies formed on or after January 1, 2024, have 90 days from the date of formation to file
• Companies created on or after January 1, 2025, will have 30 days to file

CTA reporting applies to corporations, limited liability corporations, limited liability partnerships, or similar entities registered to do business in the United States by filing documents with a secretary of state or similar office.

Prager Metis does not provide filing services for BOI reporting beyond those that require BOI reporting for Single-Member LLC’s, but it’s important that you understand your potential filing requirement. We highly recommend that you consult with an attorney to assist in determining any filing requirements.

Please get in touch with your Prager Metis tax relationship manager to discuss the reporting requirements or if you need an attorney referral. https://pragermetis.co/3CoKZDX

2024-11-12T14:07:40-05:00