Corporate Transparency Act Kicks-Off on Small Businesses Starting 1/1/24

Dec 11, 2023 | Finconomics 101, No Bull Economics

Oh, the joys of big brother! Starting at the beginning of 2024, most small businesses must now register their “Beneficial Ownership Information” to the Treasury’s Financial Crimes Enforcement Network (FinCEN). Don’t worry, Uncle Sam is simply trying to protect the innocent from anonymous shell corps and money launderers. Unfortunately, there is no carrot for complying, just a big stick. Failure to comply could result in fines up to $10k & imprisonment for up to 2 years in the gulag…  

Commentary

  • The Corporate Transparency Act (CTA) goes into effect on 1/1/24 & requires unregulated companies to report information about “beneficial owners” (or those who own at least 25% or exercise substantial control – see below) to the Treasury’s Financial Crimes Enforcement Network (FinCEN).
  • Entities created before 1/1/24 have until 1/1/25 to comply by registering their beneficial owners with FinCEN.
  • Entities created after 1/1/24 have 30 days to comply.
  • The law exempts 23 types of businesses, see below.

Source: BOI Small Compliance Guide v1.1 (fincen.gov)

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