The Corporate Transparency Act (CTA) represents a huge shift in the way LLCs, corporations, partnerships, and legal entities will now be subject to mandatory reporting beginning January 1, 2024, for bothexisting and newly created entities. This will affect each and every person who owns an entity, whether directly or indirectly, whether in whole or in part. It will also affect each and every CPA, accountant, attorney or advisor who assists their clients in incorporating a legal entity.
According to the new law, there are strict civil and criminal penalties for failing to comply.
Bridge Law partners, Lalit Kundani and Simon Khinda, will be hosting a free webinar on Thursday November 2, 2023 at 10am discussing the CTA and what you need to know. You can avoid penalties if you plan now!
If you own a percentage share in a legal entity like an LLC, corporation, partnership, or similar entity, or if you are an advisor and have clients who have ownership, you will not want to miss this live webinar.
This will affect approximately 33 Million Corporations, LLC’s and similar entities already formed AND those that will be formed after Jan 1 2024.
Many companies will be required to report and regularly update beneficial ownership information (“BOI”) they may not currently possess.
From January 1, 2024, Applicants who file the paperwork to form entities will need to disclose their information.
FinCen is not messing around. There are Civil and Criminal penalties of $500/day, up to a maximum of $10,000, and jail time.
WHO SHOULD CARE?
If you own 25% or more of the ownership in a Company, or if you exercise ‘substantial control’ in a Company, the CTA affects you! (The definition may be more than you think)
If you form entities for clients, the CTA affects you!
If you draft Trusts and Estate Plans, the CTA affects you!