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The Corporate Transparency Act, or CTA, will officially start on January 1, 2024.
Beginning in 2024, businesses formed or operating in the U.S. must identify the person who filed their formation or registration documents. Additionally, they need to report details about individuals with significant control or ownership, referred to as beneficial owners.
A beneficial owner is someone who either owns 25% or more of a company or has significant authority over its decisions. Companies are required to provide detailed information about anyone fitting this description.
Access to this data is limited to specific government entities, such as law enforcement and tax authorities, to help combat financial crimes like money laundering. The general public cannot access this information due to strict privacy protections.
An applicant is the person responsible for submitting the paperwork to establish or register a company. For foreign businesses, this refers to the individual managing the registration process. Up to two individuals may be listed as applicants.
A FinCEN Identifier is a unique ID individuals can apply for if they’re named in multiple BOI Reports. This identifier allows them to provide a single ID instead of repeating personal details across reports. It must be updated if their personal information changes.
Yes, certain businesses are exempt. For example, “large operating companies” are excluded if they:
Companies required to comply must submit a Beneficial Ownership Information (BOI) Report. This report includes:
For each beneficial owner, the report must include:
For businesses created before January 1, 2024, the deadline to file is January 1, 2025. For companies formed after that date, the report must be submitted within 90 days of creation.
The Farm Soho doesn’t provide legal or tax advice, but they recommend consulting with experts like Taylor English Duma LLP for assistance on CTA compliance.