Duration: 2:13
Show Notes
Are you looking for a quick overview of the Corporate Transparency Act (“CTA”)? In today’s Finance Moment Podcast, Financial Planner Tyler Conley provides a quick overview of the purpose of the CTA and what it means for your small business.
What is the Corporate Transparency Act?
The primary objective of the Corporate Transparency Act (“CTA”) is to limit the use of shell companies and LLCs to launder money, evade taxes and facilitate international crime.
How does this impact my small business?
You must register your LLC with the new federal database administered by the Treasury Department’s Financial Crimes Enforcement Network (“FinCen”). This database maintains records of the beneficial owners of “reporting companies” and will be accessible to certain authorities and organizations for law enforcement purposes.
What are the key features of the CTA?
- The reporting requirement went into effect on January 1, 2024; and must be completed by January 1, 2025.
- The reporting requirement is widespread for LLCs with the only exception being if the LLC has more than 20 employees and reported more than $5 million in US source income on its prior yearend tax return.
- Noncompliance with this law can lead to fines of up to $500 per day in civil penalties, up to $10,000 criminal fine and up to two years imprisonment.
To file your LLCs’ beneficial ownership information with FinCen, go online to register at FinCen.gov.
For more information on the Corporate Transparency Act and how it impacts your comprehensive financial plan, please reach out to your Syverson Strege planning team.
Visit our website at www.onlyworkforyou.com for more information on financial topics or contact your financial planning team with any questions.
