Corporate Transparency Act Compliance
The Corporate Transparency Act is a new law that went into effect in 2024. Every business organization in the US must register info about their owners and management with the Federal Government. This requirement applies to any limited liability company (LLC), corporation (Inc), partnerships (GP, LP, LLP), and business trusts.
Long story short, the Federal Government now requires all information for major 25%+ owners and management including anyone with decision-making authority (whether they are owners or not) to file background through FinCEN (Financial Crimes Enforcement Network) system. The background information is referred to as the beneficial owners
Benefits of our Technology
What the portal does:
- Your information can be re-used for additional entities and every time updates are required
- Allows you to save your progress as you complete your filing
- Send requests to other owners/control persons to upload their own information
- Scans your required ID and pre-populates the information for easy completion
- Send you regular reminders so you don’t forget to make updates when they’re due
Yes, you can file this yourself with FinCEN. We’ve found some headache problems with losing progress and needing to restart the filings when:
- You don’t do the entire filing all at once, you must start over.
- If you’re missing information from one of the Beneficial Owners, like their driver’s license, you must start over.
- If you have multiple entities, you’ll have to start over every time.
- Every time you have to refile or update a filing, you’ll have to start over.
There are only a few exemptions for companies:
- Inactive LLCs formed before January 1, 2020 that:
- Not owned by a foreign (non-US) person
- No ownership change in the last 12 months
- No revenue or expenses of more than $1000 in last 12 months
- No assets
- Large Companies that:
- Have over $5 million in annual revenue
- 20+ employees
- A physical location in the US
- Other exemptions exist only for companies already licensed or registered with the Federal Government. Some examples include banks, securities dealers, insurance companies, among others…
