gray pillars by Claire Anderson courtesy of Unsplash.

URGENT: The Corporate Transparency Act (CTA): What You Need to Know Before the 1/1/2025 Filing Deadline

Alex Rasmussen |

As we approach 2025, there’s an important deadline that may affect many business entities, including LLCs and other organizations. The Corporate Transparency Act (CTA) requires certain entities to report key information to the Financial Crimes Enforcement Network (FinCEN) by January 1, 2025. This new regulation is designed to enhance corporate transparency, combat illicit activities, and prevent the misuse of U.S. companies for financial crimes.

Who Is Affected?
If you are a Beneficial Owner (BOI) or control person of an LLC, corporation, or similar organization, this filing may apply to you. Under the CTA, a BOI is generally defined as anyone who:

  • Directly or indirectly owns 25% or more of the entity, or
  • Exercises substantial control over the entity, even if they do not have ownership.

What Is Required?
Entities that meet the criteria must file a report with FinCEN that includes details about the company and its beneficial owners, such as:

  • Full legal names
  • Date of birth
  • Current residential address
  • Government-issued identification (e.g., driver’s license or passport)

For Entities Formed After January 1, 2024
Newly formed entities have different deadlines:

  • Those formed between January 1, 2024, and December 31, 2024, must file within 90 days of their formation or registration.
  • Entities formed on or after January 1, 2025, must file their BOI reports within 30 days of formation​.

What Should You Do?

  • Consult Your Attorney: While we aim to keep you informed, it’s important to note that we are not a law firm and cannot provide legal advice. We recommend discussing your situation with a legal professional to determine if this new regulation impacts you and to ensure you meet the reporting requirements.
  • Identify Your Filing Obligation: Take time to review your involvement with any LLCs, corporations, or similar entities where you may be considered a BOI or control person.
  • Meet the Deadline: The filing deadline for most companies is January 1, 2025. Missing this deadline could result in significant penalties.

By addressing this now, you can ensure compliance and avoid potential complications as the deadline approaches.

For any questions related to the financial implications of the CTA or how it may affect your investments, feel free to reach out to our team. We are here to help you navigate the financial landscape, while your legal counsel can guide you through compliance with this new requirement.

Disclosure: The information provided in this blog post is for educational and informational purposes only and should not be construed as financial advice. While we strive to present accurate and up-to-date information, the financial, tax, and legal landscape is subject to change, and individual circumstances vary. Readers are encouraged to consult with a qualified financial advisor or professional before making any financial decisions or implementing strategies discussed in this post. Our firm does not guarantee the accuracy, completeness, or suitability of the information provided, and we disclaim any liability for any direct or indirect damages arising from the use of this information. Past performance is not indicative of future results. Any investment involves risk, and individuals should carefully consider their financial situation and risk tolerance before making any investment decisions.