Corporate Transparency Act: Countdown to Compliance with Less Than 85 Days
As of today, businesses across the United States have less than 85 days to comply with the Corporate Transparency Act (CTA), which requires the reporting of beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN). Enacted to increase transparency and combat financial crime, the CTA applies to most U.S. entities, including LLCs and corporations, and will require many businesses to disclose detailed information about individuals who own at least 25% or have significant control.
The January 1, 2025, deadline is fast approaching, and businesses that fail to comply face severe financial and legal penalties. Despite several lawsuits challenging the CTA, particularly regarding privacy concerns and the administrative burden it places on businesses, there is no indication that court decisions will be rendered before the deadline. This leaves businesses in a difficult position: they must prepare for compliance now, regardless of ongoing legal challenges.
Failure to act quickly could result in significant fines or other sanctions. As such, it is essential that businesses understand their obligations and begin gathering the necessary information to submit to FinCEN. At Strategic Tax Planning, we are committed to helping businesses navigate the complexities of CTA compliance. Our team can assist with filing the required reports, advising on who must be listed, and ensuring that your business remains compliant with federal requirements. Don’t wait until the last minute—contact us today to ensure your business is ready for the CTA deadline.
