Small business owners should be aware of a new reporting deadline coming up — with potential penalties.
The Corporate Transparency Act requires businesses with fewer than 20 employees to provide names, dates of birth, addresses and other identifying information about its owners. It’s part of a larger effort by the Department of the Treasury’s Financial Crimes Enforcement Network to crack down on money laundering and other financial crimes.
Businesses with fewer than 20 employees founded or registered to do business in the United States before Jan. 1, 2024, have until Jan. 1, 2025, to file information with the Department of the Treasury’s Financial Crimes Enforcement Network. Filing is simple, secure, and free of charge. Companies that are required to comply (“reporting companies”) must file their initial reports by the following deadlines:
- Existing companies: Reporting companies created or registered to do business in the United States before January 1, 2024 must file by January 1, 2025.
- Newly created or registered companies: Reporting companies created or registered to do business in the United States in 2024 have 90 calendar days to file after receiving actual or public notice that their company’s creation or registration is effective. Beginning in 2025, newly created or registered companies will have 30 days.
Beneficial ownership information reporting is not an annual requirement. A report only needs to be submitted once, unless the filer needs to update or correct information. For information click HERE.