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The Corporate Transparency Act went into effect on January 1, 2024. Have you heard about it? If not let’s talk about the change that just took place.
The Corporate Transparency Act went into effect January 1, 2024. This is a new reporting rule that is required to be filled out online with the Financial Crimes Enforcement Network. This is to assist with tax fraud, money laundering and financing for terrorism by capturing more information of the owner of the business, that is being operating in the United States.
So, if you have a Limited Liability Corporation (LLC), S Corporation, or a C Corporation that are not exempt, you must disclose beneficial ownership. This must be done within 90 days of the formation of a new business in 2024 or by December 31, 2024, for businesses that were in existence before 2024.
A beneficial owner is a person owning 25% or more of the business, as well as officers, non-owner managers and board members. When filing out the form online for the beneficial owner you will be asked your full legal name, date of birth, address, and for a picture ID (driver’s license or passport). Also, ownership and address changes will have to be reported within 30 days.
Penalties for non-compliance are $500 per day and up to 2 years in prison. Make sure that you take the time out to file out the form to avoid the penalties.
Join my group here. It is filled with resources and support for entrepreneurs to build their business credit! See what it’s about, here’s the link:
https://www.facebook.com/groups/businesscreditmasterycircle
I will see you on the inside!
About the Author
Kimberly Lewis is currently the CEO of EPC Solutions LLC. She specializes in helping business owners establish excellent business credit scores and then leveraging those scores to access credit and cash for their businesses. For more information on business credit scores, business credit and business loans visit https://epc-solutions.net.