Buratti Law Advisory: New Compliance Obligations for American Corporations

BFS Corporate Member Buratti Law is announcing to our BFS Network that there is a new compliance obligation established by the Corporate Transparency Act (CTA). This legislation mandates that nearly all corporations, LLCs, and similar entities must file a Beneficial Ownership Information (BOI) Report with FinCEN, a bureau of the Department of the Treasury. Here's some key information to note:

Purpose of the CTA:

The Corporate Transparency Act (CTA) serves to increase transparency in business ownership, making it more difficult for individuals to conceal illegal activities, such as money laundering. By mandating companies to disclose their true owners, the CTA assists law enforcement in identifying and preventing financial crimes.

Who It Applies To:

• Entities Covered: Most corporations, LLCs, and similar entities formed through state filings or foreign entities registered to do business in the US.

• Exemptions: Certain qualifying entities may be exempt. Contact us to determine if your entity qualifies for an exemption.

Deadlines:

• For Entities Formed Before January 1, 2024: Deadline is on or before January 1, 2025.

• For Entities Formed Between January 1, 2024, and January 1, 2025: Deadline is 90 days from the formation confirmation date provided by the state of jurisdiction.

• After January 1, 2025: Deadline is 30 days from the formation confirmation date provided by the state of jurisdiction.

Filing Options:

• Direct Filing: You can file your BOI Report directly on FinCEN’s website or through its linked PDF.

• Third-Party Service Providers: You may use a third-party service provider.

• Buratti PA Assistance: Please contact Natasha Bellroth at natasha@burattilaw.com for assistance in the preparation and filing of your entity’s BOI Report.

Penalties: 

Failing to report under the CTA can result in civil penalties of up to $500 per day. Additionally, Reporting Entities that intentionally provide false or misleading information may face criminal penalties, including fines of up to $10,000 and imprisonment for up to 2 years.

Important Note:

Please note that unless explicitly agreed upon in writing, our engagement does not include providing legal advice concerning the CTA. Buratti PA is not responsible for government filings required under the CTA.

For further clarification or assistance in determining your entity’s status or applicable exemptions, please don't hesitate to contact Natasha Bellroth at natasha@burattilaw.com.

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