The Corporate Transparency Act requires the disclosure of corporate ownership with the goal of preventing money laundering and the financing of terrorism. This Act passed in 2021.
This Effects LLC.s, Corporations and Other Businesses of All Sizes
Most U.S. corporations, including Limited Liability Companies (LLCs), are now or will be required to file a Beneficial Ownership Information (BOI) form with the United States Department of Treasury’s Financial Crime Enforcement Network (FinCEN).
Companies existing as of January 1, 2024, have until January 1, 2025, to complete the form. Companies created between these dates have ninety (90) days to file. Companies starting or organized next year will have thirty (30) days to file.
The Penalties Are Steep
Failure to comply with the Act may result in civil penalties up to $500.00 per day for each day the violation continues and could additionally result in up to two (2) years in prison as well as a stand-alone fine of up to $10,000.00.
If you are a beneficial owner of an LLC, corporation or other company, you must determine if you are required to file a BOI with FinCEN (there are some exemptions). Generally, even if you are a sole member of an LLC you may still have to file. Do not wait and file before it’s too late.
Vincent J. Averaimo (vaveraimo@bglaw.com) is a partner with Barton Gilman LLP in the Milford, Connecticut office whose practice focuses in part on general civil litigation, including representing businesses, corporations and individuals in general business matters.
Paul Lewis Otzel (potzel@bglaw.com) is a partner with Barton Gilman LLP in the Milford, Connecticut office whose practice includes business organization and counseling.
