In January 2021, the Corporate Transparency Act (CTA) became law. It’s administered by the U.S. Treasury Department’s Financial Crimes and Enforcement Network (FinCEN), which collects, protects, and discloses certain information about businesses operating in the U.S. The purpose of the CTA is to prevent illicit activity or terrorist funding from occurring through the use of “dummy” or shell corporations. The CTA mainly applies to start-ups and small to mid-sized businesses. It requires certain reports to be submitted annually, including a Beneficial Ownership Information (BOI) report.
Per the CTA, Beneficial Owners are defined as those with a substantial interest in the business, controlling ownership, or an entity that benefits from the business. Many business owners understandably want to protect their interests, but the penalties for non-compliance with the CTA can be serious. If you’re unsure whether your business must submit a BOI or if you’re unsure how to compile and submit the report, we can help. The Maryland beneficial ownership information reporting lawyers at Crepeau Mourges have studied the act at great length, and we’re ready to help your business.
Why Do I Need Maryland Beneficial Ownership Information Reporting Lawyers?
If your business is not one of the 23 types exempt from CTA reporting, then you must submit the BOI report annually. Any company applicants who form a business categorized as a domestic reporting company after January 2021 must also file the BOI report. This document contains information about each beneficial owner, including:
- Their full name and date of birth
- Complete current address
- A unique identifying number (such as a state ID card, U.S. passport, or state driver’s license) and an image of the document displaying that number
This becomes the beneficial ownership entity’s FinCEN Identifier. The report that your business submits must contain FinCEN Identifiers of all parties indicated in the CTA. This isn’t all that the BOI must contain. The CTA and required reports are a significant departure from U.S. business regulations, and as such, there is a lot of room for error for smaller businesses unfamiliar with the new laws.
Keeping Compliant With The Corporate Transparency Act
As your CTA lawyers, we can handle all the reporting requirements and help your business avoid penalties. Part of our services includes evaluating the implications of the CTA for your organization.
We’ll evaluate your business structure to determine whether it qualifies for CTA exemptions. If not, we calculate the percentage of “ownership interests” of all investors, owners, and other interested parties to determine which ones must be on the BOI report.
Your business may need new policies and procedures moving forward. We may advise you of the steps to take to make CTA reporting easier in the future. If your corporation or LLC is one of those not exempt from CTA reporting, you have a limited time to file your BOI report.
BOI Compliance Attorneys Protecting You
The legal requirements for this report can be complicated, but rest assured, the skilled Maryland beneficial ownership information reporting lawyers from Crepeau Mourges are prepared for even the trickiest reporting. We can help your business complete and file the report on time and gather all the information required by the U.S. Treasury Department. Contact us today to get started.