If you are a small business, then there are things you must know about the Corporate Transparency Act (CTA) and Beneficial Ownership Information Reporting. As of this year, a new reporting requirement has gone into effect that necessitates business file a Beneficial Ownership Information (BOI) report to the United States Department of Treasury’s Financial Crimes Enforcement Network (FinCEN). If you need assistance implementing the new expectations under this act, contact our Corporate Transparency Act compliance lawyers Washington residents can trust. The team at Silverman Law Office, PLLC is glad to meet with you to discuss further.
Purpose Of The CTA
A BOI report refers to identifying details about the individuals who directly or not directly control or own a company. Every business is required to file a BOI report unless it is exempt from doing so. Most exemptions are for entities that have already been subjected to federal or state regulations. Exempt companies could include public trading companies, credit unions, banks, services businesses, tax-exempt entities, securities brokers and dealers, insurance companies, public utilities, state-licensed insurance producers, accounting firms, and pooled investment vehicles. A large operating company that has more than 20 full-time employees in the U.S., an operating presence at an office in the U.S., and has filed a federal income tax in the U.S. for the previous year showing more than $5 million in sales or gross receipts may be exempt.
Reporting Information
A beneficial owner is an individual who, either indirectly or directly, exercises control over the reporting company or controls/owns at least 25% of ownership interests. A company applicant is an individual who has directly filed the document which creates the domestic reporting company and is primarily responsible for controlling or directing the filing (if more than one party is involved in the document filing). Changes to the information report about the reporting company or beneficial owners have to submit an updated report within 30 days after the date the change occurred. If you have questions about what information must be reported under the CTA act, contact our Washington Corporate Transparency Act compliance attorneys. The report must contain:
- Full legal name
- Date of birth
- Current residential address (exemption would be a company applicant who registers or forms an entity in the course of the company applicant’s business, has to provide the business street address)
- Unique identifying number (along with the jurisdiction issuing from either a U.S. passport, local or state ID document, driver’s license, or if the party has none of these a foreign passport will suffice, and an image of the document where the unique identifying number was obtained)
Silverman Law Office, PLLC
The intention of the Corporate Transparency Act (CTA) is to prevent money laundering, terrorism financing, tax fraud, and other illegal acts. According to congress, to protect national interests and ward against unlawful acts, specific procedures for the collection and protection of beneficial ownership information is needed. To get help from our WA Corporate Transparency Act Compliance attorneys, reach out today for a consultation. Our team at Silverman Law Office, PLLC is ready to hear from you!
