At NC Planning, we know that your business is more than just numbers and filings; it’s your passion and your livelihood. That’s why we’re here to support you through every stage of your journey, including navigating the details of the Corporate Transparency Act (CTA).
With the January 1, 2025 deadline approaching, now is the perfect time to take a proactive approach. Let us help you keep your business compliant while building a foundation for long-term success.
What Is the Corporate Transparency Act (CTA)?
The CTA is a federal requirement designed to promote transparency and combat misuse of shell companies for illegal activities. Under this law, many businesses must file a Beneficial Ownership Information (BOI) report with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN).
This new reporting process may feel like another task to check off, but it’s also an opportunity to take a closer look at your business and make sure you’re set up for sustainable growth and success.
Who Needs to File a BOI Report?
The CTA applies to two types of businesses:
- Domestic Reporting Companies: Corporations, LLCs, and other entities created or registered with state authorities.
- Foreign Reporting Companies: Entities formed outside the U.S. but registered to do business within the U.S.
Some businesses, such as large operating companies, public companies, and highly regulated entities like banks, credit unions, and nonprofit organizations, are exempt from filing.
Not sure if this applies to your business? We can help you figure it out and take the guesswork out of compliance!
What Information Will You Need?
Filing a BOI report requires sharing details about:
- Beneficial Owners: Anyone who has significant control over the company or owns at least 25% of it.
- Company Applicants: Those who file or oversee the filing of the company’s formation documents.
Details Needed for Individuals:
- Full legal name
- Date of birth
- Residential address
- Unique identifying number (e.g., driver’s license or passport)
Details Needed for Companies:
- Full legal name (including trade names)
- Principal business address
- Jurisdiction of formation
- Taxpayer identification number (e.g., EIN)
We’ll walk you through every step to make this process seamless and straightforward.
Key Filing Deadlines
Deadlines can be confusing, but our team is here to make sure you’re ahead of the curve:
- Existing Businesses (formed before January 1, 2024): File by January 1, 2025.
- New Businesses (formed between January 1, 2024, and January 1, 2025): File within 90 days of formation.
- Future Businesses (formed after January 1, 2025): File within 30 days of formation.
Changes to ownership or inaccuracies? These must be reported within 30 days of discovery.
At NC Planning, we view these deadlines as checkpoints, not roadblocks. We’ll help you meet them while keeping your long-term goals in sight.
Why Compliance Matters
Non-compliance can lead to hefty penalties:
- Civil Penalties: $500 per day for late filings.
- Criminal Penalties: Fines up to $10,000, imprisonment for up to two years, or both.
Our team at NC Planning can help you avoid these consequences while strengthening your business foundation. Our goal is to provide you with peace of mind so you can focus on growing your business. We work closely with our clients to create a proactive plan, not just for this filing requirement but for your business’s continued success.
Schedule an introductory call with Jennifer on our business planning team to discuss your specific needs. We’ll work together to create a strategy that works for you so that you can focus on what matters most: growing your business and achieving your goals.
