Understanding the Corporate Transparency Act (CTA) Filing Requirements

As we approach the end of the year, it's essential for businesses to be aware of upcoming regulatory deadlines, especially regarding the Corporate Transparency Act (CTA). At Kaplan CFO Solutions, we understand how busy this time of year can be, and with many still recovering from the impacts of Hurricane Helene, we want to ensure you don't overlook this critical compliance requirement.

What is the Corporate Transparency Act (CTA)?

The CTA is a regulation aimed at combating money laundering, fraud, and tax evasion by requiring certain businesses to disclose information about their beneficial owners. This information must be reported to the Financial Crimes Enforcement Network (FinCEN) to promote greater transparency and accountability.

Who Needs to File?

If your business does not meet all three of the following criteria, you may be required to comply with the Beneficial Ownership Information Registration (BOIR) filing requirements:

1. $5 Million or More in Annual Revenue Your business must generate annual revenue of $5 million or more.
2. A Physical Brick-and-Mortar Location Your business must have a physical, operational location.
3. More than 20 Employees Your business must employ more than 20 full-time staff.

Each organizational entity must be filed separately. For example, if you have multiple real estate entities, each one will need to be registered individually. It’s also important to note that certain exemptions may apply, including for some non-profits (though not all) and financial companies regulated by the SEC or FINRA.

What Happens if You Don't File?

Businesses required to comply with the CTA must complete their Beneficial Ownership Information Registration (BOIR) by December 31, 2024. Failure to file by the deadline could result in penalties of up to $500 per day, so it’s crucial to act promptly to avoid these fines.

How Kaplan CFO Solutions Can Help

At Kaplan CFO Solutions, our experienced CFOs are here to guide you through the CTA filing process and ensure compliance. Whether you're an existing client or considering our services, we can help you determine whether your business is exempt or assist you with the necessary filings.

• Current Clients: Your Kaplan CFO will assist you directly in assessing your compliance requirements and guide you through the filing process.
• For Those Without a Kaplan CFO: We are available to support you on a project basis. Our team can help assess your filing needs and guide you through each step. To discuss your situation in more detail, please contact us at (828) 338-9091.

Key Takeaway

Don't wait until the last minute to address your CTA compliance requirements. With the deadline approaching, ensuring your business meets the necessary filing criteria will save you from potential penalties and provide peace of mind.

Contact Us

Need help navigating the Corporate Transparency Act? Reach out to Kaplan CFO Solutions at (828) 338-9091 to discuss your specific situation and how we can assist. Our team is dedicated to helping you stay compliant and focused on your business goals.