(as of 03/26/24)

By: Kristina E. Wilson, Esq of KEW Legal, P.A.

The Corporate Transparency Act (“CTA”) went into effect on January 1, 2024 to prevent money laundering and the financing of terrorism. The CTA requires businesses to disclose specific ownership information to the federal government, specifically the Financial Crimes Enforcement Network ("FinCEN"). If the entity was formed before January 01, 2024, the Beneficial Ownership Information Report ("BOIR”) must be submitted before December 31, 2024. If the entity was formed on or after January 01, 2024, business owners have only 90 days to file the BOIR. Additionally, there is also a strict requirement to update BOIRs promptly to reflect any changes to original filings.

Under the CTA, beneficial owners are individuals that have direct or indirect ownership stake in an entity. This means any individual that owns at least 25% of the entity, has control over the equity, or is in a position to have major influence on the entity’s operations or reporting decisions. Specifically, some the information that must be disclosed for each beneficial owner includes the owners’ names, addresses, dates of birth, identification number, as well as entity information filed in the state in which the entity operates.

Unless exempt under the CTA, all types of entities operating or doing business in the United States, big or small, are impacted and failure to timely comply can lead to penalties such as fines of $500 per day or criminal penalties up to $10,000 and/or two years in prison.

It is important to note that the recent launch of the CTA has resulted in significant uproar in the business and legal community and the law itself has been challenged. Although there are ongoing challenges to this law working their way through the court system, there is still an obligation for compliance for the majority of business owners. It is vital for all business owners to take the CTA seriously and make sure they have properly filed the required information prior to the applicable deadline. Navigating the nuisances of the CTA can be tricky and overwhelming and it is advisable to contact an attorney to minimize reporting errors that could create legal exposure.

For more information about the CTA or assistance in filing your entity’s BOIR, please contact our office at (305) 990-2300 or info@kewlegal.com to schedule a free consultation.

KEW Legal (www.kewlegal.com) is a law firm based in Sunny Isles Beach, FL focused on the areas of corporate law, real estate, and general counsel services. KEW Legal strives to provide efficient legal counsel and personalized services aimed at streamlining operations and maximizing profitability for our clients.