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Corporate Transparency Act:
from GROW Magazine 2024
by AgCountryFCS
Most Existing Entities Need to Register with FinCEN Before January 1, 2025
Written by: The AgCountry Legal Department
The Corporate Transparency Act went into effect on January 1, 2024, and most entities need to register and report certain beneficial ownership information (BOI) to the Department of Treasury’s Financial Crimes Enforcement Network (FinCEN).
A corporation, limited liability company, limited partnership, limited liability partnership, or limited liability limited partnership created by filing a document with the Secretary of State or Department of Financial Institutions is considered a reporting company and required to register. A sole proprietorship, general partnership, and trust are generally not considered a reporting company and, therefore, would not be required to register and report.
Entities existing before January 1, 2024, must file before January 1, 2025. Entities created on or after January 1, 2024, and before January 1, 2025, have 90 calendar days to file after the entity receives actual or public notice that the registration is effective. The due date for entities created on or after January 1, 2025, is 30 calendar days after the entity receives actual or public notice that the registration is effective.
Reports are to be filed electronically with FinCEN and will include information about the entity and certain owners of the entity. There are exceptions for certain reporting companies to file the BOI report, but most exceptions will likely not apply to AgCountry’s member-owners.
There are significant penalties for noncompliance, which include failing to file or providing false information. Penalties range from up to $500 a day fine, a criminal fine up to $10,000, or imprisonment for two years. There is a 90-day safe harbor if a person unknowingly submits inaccurate information and corrects the report within such timeframe.
Contact your legal counsel or trusted advisor if you are unsure whether the Corporate Transparency Act registration and reporting applies to your entity or you have questions about the Corporate Transparency Act.
This article is for informational and educational purposes and is not legal advice. Additional information and the report to file can be found at: https://www.fincen.gov/boi.
