Providing Peace Of Mind

Immediate Action Required for Most Small Business Owners: New Federal Financial Crimes Enforcement Network (FinCEN) Corporate Transparency Act Reporting Requirements

| Jan 18, 2024 | Firm News

As addressed in the KH video below, the new federal Corporate Transparency Act (“CTA”) requires most small business entities registered with a Secretary of State (e.g., corporation, limited liability company, family limited liability company, limited partnerships, etc.) with less than 21 full-time employees and less than $5 million of gross receipts to report detailed entity ownership and control information to the Financial Crimes Enforcement Network (FinCEN), an agency of the Department of the Treasury. The purpose of FinCEN and the CTA is to help safeguard the financial system from illicit use, combat money laundering and related crimes including terrorism, and promote national security.

The CTA is the law and mandates the reporting of a covered business entity’s name and owner personal identifying information, as well as the persons or organizations possessing “substantial control” over such an entity’s operations. Such reporting, especially determining who or what has “substantial control,” or is exempt, can be complicated and difficult.

Failure to report adequately or to maintain reported information under the CTA is a felony and could subject responsible business owners and fiduciaries to jail time of up to two years and civil penalties of $500 per day, up to a maximum of $10,000.

Immediate action is warranted, and Kelleher + Holland, LLC can assist.

Entities registered with a Secretary of State before January 1, 2024, must report on or before December 31, 2024. Entities registered with a Secretary of State after January 1, 2024, must report within 90 days of organization, incorporation, or other formation.

Please watch this short CTA video clip narrated by KH Corporate Co-Chair, Jonathan Fox and CTA Manager, Carol Kregel.

Consider acting now with the assistance of Kelleher + Holland, LLC. Call Our CTA Hotline at 847-242-1777 or email us at [email protected].

For more information please visit the FinCEN website: