The Corporate Transparency Act (CTA), which became law effective January 1, 2021, is part of the National Defense Authorization Act. The CTA aims to combat terrorist financing, money laundering, or other illicit activities facilitated through “shell companies” and other byzantine corporate structures. Many industries will be affected by the requirements for compliance, and because the requirements differ from other federal reporting guidelines, accidentally making a business misstep is highly likely without the advice of experienced Maryland Corporate Transparency Act compliance lawyers. The legal team at Crepeau Mourges has spent countless hours examining the requirements for businesses under the CTA so we can best help clients like you.
Your Business And The Corporate Transparency Act
The CTA was signed into law due to the growing concern about the potential for dangerous misuse of “shell companies” for illegal or terroristic purposes. The CTA is a significant departure from previous government oversight of businesses, Limited Liability Corporations, and professional LLCs. Now, certain business entities are required to report their beneficial ownership information in an initial disclosure report to the Financial Crimes Enforcement Network (FinCEN), a government agency overseen by the U.S. Treasury Department. These entities must also submit a report of change should the composition of their beneficial ownership change. Updates are required to be submitted within 30 calendar days.
A beneficial owner is one with substantial control or investment interest in the legal business entity or those who receive economic benefits from said entity.
Is your business one that must disclose the beneficial owners, or is your business one of the 23 exempt types of businesses from the Corporate Transparency Act requirements? It’s confusing for many busy business owners – we understand. Because the legislation is so new and different from other business requirements, you likely need an attorney familiar with the Corporate Transparency Act and its provisions to help you navigate any obligations you have.
Maryland Corporate Transparency Act Compliance Lawyers
Our Corporate Transparency Act attorneys can compile the required initial report for the federal government and conduct a third-party audit of your company to ensure it’s correct and filed on time. Should your business undergo changes that must be reported, we’ll also complete the required updated report and submit that within the federal deadline, too. We advise our clients on how the change will impact them and how they can balance their responsibilities and obligations to beneficial owners while maintaining compliance with CTA and FinCEN requirements. Should you accidentally run afoul of this new legislation, we can advocate for you, advise you on any necessary corrective action, and help mitigate any penalties.
Skilled CTA Attorneys Working For You
Reducing your exposure and ensuring that your business complies with the Corporate Transparency Act requirements is critical. The penalties for non-compliance can be severe and may disrupt the flow of business for quite some time. Although you may be doing due diligence for your legal obligations, the advice of our legal team can be invaluable in giving a third-party assessment if your risk and what you need to do moving forward. Contact Crepeau Mourges today to see how our Maryland Corporate Transparency Act compliance lawyers can help your business prosper.