The Corporate Transparency Act: Why Compliance Is Crucial for Business Owners

Pullman & Comley Business and Finance attorneys Russel F. Anderson and James F. Martin co-authored an article for BusinessWest on the Corporate Transparency Act (CTA), a federal initiative to limit money laundering, tax evasion, and other illicit activities. The CTA took effect on Jan. 1, 2024 and requires many businesses and their owners to register with the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN).

Russ and Jim outline reporting requirements, penalties for not reporting and key items to ensure your business is in compliance before the end of this year. "All entities that were created before the start of 2024 have until Dec. 31 to submit a BOI report to FinCEN. If there are changes in reported beneficial ownership information, the entity must file an updated report to FinCEN no later than 30 days after the date of the change," Russ and Jim write. They stress the importance of the requirements, stating "Given the CTA’s draconian penalties, it is advisable to make your CTA registration a high priority and complete the required filing as soon as possible." 

To read the full article, visit www.businesswest.com.