Navigating the Corporate Transparency Act (CTA): A Guide for Clients

by | May 24, 2024 | 0 comments

Starting January 1, 2024, the Corporate Transparency Act (CTA) is in effect. This legislation requires most existing companies, including LLCs and Limited Partnerships, to report their beneficial owners and provide personal identification information. Compliance is mandatory, and there are significant penalties for non-compliance. For more details about the CTA, read our article: “What is the Corporate Transparency Act?”

During the reporting process, FinCEN will identify documentation that Okura & Associates does not have. As a result, Okura & Associates will not handle the reporting for existing clients. The responsibility for compliance with the CTA falls on the clients. However, we are here to help you prepare.

To report your entities, you can complete the process online on the FinCEN website. It typically takes less than 5 to 10 minutes per entity. Additionally, you can obtain a FinCEN ID, a unique number assigned by FinCEN to an individual. This ID allows you to report the FinCEN ID instead of detailed personal information in the Beneficial Ownership Information Report (BOIR) submitted to FinCEN. Although not mandatory, obtaining a FinCEN ID can streamline the process if you have multiple entities. You can create a FinCEN ID by registering here.

Each entity needs to be reported only once. However, if there are any changes in the information previously submitted about a reporting company or its beneficial owners, an amendment must be filed within 30 calendar days of the change. This includes any changes in beneficial ownership or updates to previously reported information.

To assist you, we have attached a FinCEN document that provides a step-by-step guide through the reporting process. If you still have questions after reviewing this document, please reach out to us, and we will do our best to assist you.