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**Upcoming Compliance Alert: California's Proposed SB 1201 and Its Impact on Your Business** California Senate Bill 1201, if passed, will significantly increase transparency requirements for businesses. This legislation mandates annual reports for all corporations, LLCs, and REITs formed or registered in California, detailing beneficial owners' names and addresses. A beneficial owner is defined as anyone with substantial control or a 25% ownership stake. **Important Considerations:** - Enhanced Federal Requirements: SB 1201 adds to the federal Corporate Transparency Act (CTA), which came into effect on January 1, 2024. - Strict Penalties for Non-Compliance: Both civil and criminal penalties are on the table for those who fail to comply, making it imperative to adhere strictly to these requirements. **Action Steps:** - Evaluate Your Current Compliance: Review and update your compliance strategies in light of these new requirements. - Get Professional Advice: At GGB Law, our team offers expert guidance to help you navigate these regulatory changes and ensure compliance. Contact us for tailored advice: (949)660-1600 #CorporateTransparency #SB1201 #Compliance #BusinessLaw #GrantGenoveseBaratta #CTA #LegalUpdate