---
title: The Corporate Transparency Act
description: New Beneficial Owner Information Reporting Requirements Under the Corporate Transparency Act
image: https://info.ongandcompany.com/hubfs/webinar%20jan%2031.png
---

[![](https://info.ongandcompany.com/hubfs/Backgrounds/ong-final_sig.jpg)](http://www.ongandcompany.com/)

# The Corporate Transparency Act

[Katrina Lassiter](https://info.ongandcompany.com/blog/author/katrina-lassiter) / February 15, 2024 /

[The Corporate Transparency Act](https://info.ongandcompany.com/blog/topic/the-corporate-transparency-act)

![](https://info.ongandcompany.com/hubfs/Katrina%202022%20HS-1.jpeg)

**New Beneficial Owner Information Reporting Requirements Under the Corporate Transparency Act**

Our team recently hosted a webinar on the new Beneficial Owner Information Reporting requirements that went into effect on January 1, 2024. Links to the webinar and presentation material are provided below, and a summary of the information is provided in the text below. We recommend that you review this information to understand how these new requirements impact you, as it is applicable to all U.S. registered corporations, LLCs, or similar entities, with very limited exceptions.

[Click Here for Link to Webinar](https://us02web.zoom.us/rec/share/2q73yHo0ZjpqP1kg6FpktAabpXaicQqCaWkEF52uSPJN6FV5KivIB2vx2Z3-6czD.QgcEKE2uB4QctccS)   > Passcode:51Tw24@C

[Click Here for Link to Presentation PDF](https://info.ongandcompany.com/hubfs/Corporate%20Transparency%20Act%20%26%20BOI%20Reporting%20VF.pdf)

** **

**What has changed?**

- In 2021, Congress enacted the Corporate Transparency Act to curb illicit finance. This law requires many companies doing business in the United States to report information about who ultimately owns or controls them.
- Effective January 1, 2024, many companies in the United States must report information about their beneficial owners-the individuals who ultimately own or control the company-to the Financial Crimes Enforcement Network (FinCEN) a bureau of the U.S. Department of the Treasury.
- FinCEN will store BOI reports in a centralized database and only share this information with authorized users for purposes specified by law.
- The new FinCEN database, called the Beneficial Ownership Secure System (the “BOSS”), will collect the names, date of birth, addresses, and identification documents of individuals who own at least a 25% equity stake in each reporting company or who exercise substantial control over the reporting company.
- The purpose of the dataset is to provide U.S. law enforcement with the resources to crack down on anonymous shell companies, money launderers, terrorists, and criminals.

 

**How Does this Impact Me?**

- Although the CTA is intended to assist law enforcement in its anti-money laundering and counter-terrorism efforts, it is widely applicable, with very limited exception, all U.S. registered corporations, LLCs, or similar entities, whether foreign or domestic.
- FinCEN estimates that 32.6 million entities will be subject to the CTA reporting rules when they go into effect on January 1, 2024, and that an additional 5 million entities will be required to comply with the CTA each year thereafter.
- Civil and Criminal penalties apply to the failure to report complete or updated beneficial ownership information reports, including penalties of up to &500 per day and criminal penalties of up to $10,000, two years’ imprisonment, or both.
- Beneficial ownership information reporting is not an annual requirement. Unless a company needs to update or correct information, a report only needs to be submitted once.

 

**When Do I Report?**

- If your company was created or registered prior to January 1, 2024, you will have until January 1, 2025 to report BOI
- If your company is created or registered in 2024, you must report BOI within 90 calendar days after receiving actual or public notice that your company’s creation or registration is effective
- If your company is created or registered on or after January 1, 2026, you must file BOI within 30 calendar days after received actual or public notice that its creation or registration is effective
- Any updates or corrections to beneficial ownership information that you previously filed with FinCEN must be submitted within 30 days

 

**Recommendations:**

1. Make a plan to comply with the deadlines that are applicable to your situation
2. Contact your business attorney (or engage one) to keep company legal documents up to date and consistent with BOI reporting
3. Formally dissolve inactive entities through Secretary of State offices
4. Add the FinCEN BOI reporting to the list of updates required when there is a change in contact information for the reporting company and/or beneficial owners of the company
5. Create a standard process for notification and collection of contact information updates for beneficial owners to make sure updates are reported timely to Fin CEN
6. Make sure information is consistent between state filings, FinCEN reporting, and bank accounts.

 

Please do not hesitate to reach out with any questions as we are happy to help!

- [Tweet](https://twitter.com/share)

### Subscribe

### Recent Posts

### Topics

- [Business Taxes (2)](https://info.ongandcompany.com/blog/topic/business-taxes)
- [Client Spotlight (18)](https://info.ongandcompany.com/blog/topic/client-spotlight)
- [COVID-19 Relief (2)](https://info.ongandcompany.com/blog/topic/covid-19-relief)
- [Education Savings (5)](https://info.ongandcompany.com/blog/topic/education-savings)
- [Education Tax Benefits (10)](https://info.ongandcompany.com/blog/topic/education-tax-benefits)
- [Education Tax Credits (2)](https://info.ongandcompany.com/blog/topic/education-tax-credits)
- [Estate Planning (1)](https://info.ongandcompany.com/blog/topic/estate-planning)
- [Estate Tax (3)](https://info.ongandcompany.com/blog/topic/estate-tax)
- [Financial Statements (1)](https://info.ongandcompany.com/blog/topic/financial-statements)
- [Flexible Spending Accounts (2)](https://info.ongandcompany.com/blog/topic/flexible-spending-accounts)
- [Health Insurance (3)](https://info.ongandcompany.com/blog/topic/health-insurance)
- [Home Office Deductions (1)](https://info.ongandcompany.com/blog/topic/home-office-deductions)
- [Information Reports (3)](https://info.ongandcompany.com/blog/topic/information-reports)
- [Kansas Sales Tax (1)](https://info.ongandcompany.com/blog/topic/kansas-sales-tax)
- [Nonprofits (1)](https://info.ongandcompany.com/blog/topic/nonprofits)
- [One Big Beautiful Bill Act (1)](https://info.ongandcompany.com/blog/topic/one-big-beautiful-bill-act)
- [Partnership Rules (1)](https://info.ongandcompany.com/blog/topic/partnership-rules)
- [Payroll (6)](https://info.ongandcompany.com/blog/topic/payroll)
- [Real Estate (7)](https://info.ongandcompany.com/blog/topic/real-estate)
- [Retirement Savings (17)](https://info.ongandcompany.com/blog/topic/retirement-savings)
- [Self Employment (13)](https://info.ongandcompany.com/blog/topic/self-employment)
- [Starting a New Business (7)](https://info.ongandcompany.com/blog/topic/starting-a-new-business)
- [State PTET Updates (1)](https://info.ongandcompany.com/blog/topic/state-ptet-updates)
- [Tax Cuts and Jobs Act (1)](https://info.ongandcompany.com/blog/topic/tax-cuts-and-jobs-act)
- [Tax Debt (3)](https://info.ongandcompany.com/blog/topic/tax-debt)
- [Tax Deductions (82)](https://info.ongandcompany.com/blog/topic/tax-deductions)
- [Tax Fraud (5)](https://info.ongandcompany.com/blog/topic/tax-fraud)
- [Tax Planning (86)](https://info.ongandcompany.com/blog/topic/tax-planning)
- [Tax Representation (5)](https://info.ongandcompany.com/blog/topic/tax-representation)
- [The Corporate Transparency Act (1)](https://info.ongandcompany.com/blog/topic/the-corporate-transparency-act)
- [Unclaimed Property (1)](https://info.ongandcompany.com/blog/topic/unclaimed-property)

[See all](https://info.ongandcompany.com/blog/corporate-transparency-act#)

### Archive

- [June 2026 (1)](https://info.ongandcompany.com/blog/archive/2026/06)
- [May 2026 (2)](https://info.ongandcompany.com/blog/archive/2026/05)
- [April 2026 (2)](https://info.ongandcompany.com/blog/archive/2026/04)
- [March 2026 (1)](https://info.ongandcompany.com/blog/archive/2026/03)
- [January 2026 (1)](https://info.ongandcompany.com/blog/archive/2026/01)
- [November 2025 (1)](https://info.ongandcompany.com/blog/archive/2025/11)
- [September 2025 (2)](https://info.ongandcompany.com/blog/archive/2025/09)
- [August 2025 (3)](https://info.ongandcompany.com/blog/archive/2025/08)
- [July 2025 (4)](https://info.ongandcompany.com/blog/archive/2025/07)
- [December 2024 (1)](https://info.ongandcompany.com/blog/archive/2024/12)
- [September 2024 (1)](https://info.ongandcompany.com/blog/archive/2024/09)
- [February 2024 (1)](https://info.ongandcompany.com/blog/archive/2024/02)
- [October 2023 (1)](https://info.ongandcompany.com/blog/archive/2023/10)
- [September 2023 (1)](https://info.ongandcompany.com/blog/archive/2023/09)
- [July 2023 (2)](https://info.ongandcompany.com/blog/archive/2023/07)
- [June 2023 (1)](https://info.ongandcompany.com/blog/archive/2023/06)
- [November 2022 (1)](https://info.ongandcompany.com/blog/archive/2022/11)
- [September 2022 (1)](https://info.ongandcompany.com/blog/archive/2022/09)
- [July 2022 (1)](https://info.ongandcompany.com/blog/archive/2022/07)
- [December 2021 (1)](https://info.ongandcompany.com/blog/archive/2021/12)
- [November 2021 (1)](https://info.ongandcompany.com/blog/archive/2021/11)
- [April 2021 (1)](https://info.ongandcompany.com/blog/archive/2021/04)
- [January 2021 (1)](https://info.ongandcompany.com/blog/archive/2021/01)
- [December 2020 (1)](https://info.ongandcompany.com/blog/archive/2020/12)
- [October 2020 (1)](https://info.ongandcompany.com/blog/archive/2020/10)
- [June 2020 (1)](https://info.ongandcompany.com/blog/archive/2020/06)
- [April 2020 (2)](https://info.ongandcompany.com/blog/archive/2020/04)
- [March 2020 (4)](https://info.ongandcompany.com/blog/archive/2020/03)
- [February 2020 (1)](https://info.ongandcompany.com/blog/archive/2020/02)
- [January 2020 (2)](https://info.ongandcompany.com/blog/archive/2020/01)
- [December 2019 (1)](https://info.ongandcompany.com/blog/archive/2019/12)
- [November 2019 (1)](https://info.ongandcompany.com/blog/archive/2019/11)
- [October 2019 (4)](https://info.ongandcompany.com/blog/archive/2019/10)
- [September 2019 (2)](https://info.ongandcompany.com/blog/archive/2019/09)
- [August 2019 (3)](https://info.ongandcompany.com/blog/archive/2019/08)
- [July 2019 (4)](https://info.ongandcompany.com/blog/archive/2019/07)
- [June 2019 (2)](https://info.ongandcompany.com/blog/archive/2019/06)
- [May 2019 (3)](https://info.ongandcompany.com/blog/archive/2019/05)
- [April 2019 (3)](https://info.ongandcompany.com/blog/archive/2019/04)
- [March 2019 (2)](https://info.ongandcompany.com/blog/archive/2019/03)
- [February 2019 (2)](https://info.ongandcompany.com/blog/archive/2019/02)
- [January 2019 (3)](https://info.ongandcompany.com/blog/archive/2019/01)
- [December 2018 (3)](https://info.ongandcompany.com/blog/archive/2018/12)
- [November 2018 (4)](https://info.ongandcompany.com/blog/archive/2018/11)
- [October 2018 (4)](https://info.ongandcompany.com/blog/archive/2018/10)
- [September 2018 (4)](https://info.ongandcompany.com/blog/archive/2018/09)
- [August 2018 (3)](https://info.ongandcompany.com/blog/archive/2018/08)
- [July 2018 (2)](https://info.ongandcompany.com/blog/archive/2018/07)
- [June 2018 (4)](https://info.ongandcompany.com/blog/archive/2018/06)
- [May 2018 (5)](https://info.ongandcompany.com/blog/archive/2018/05)
- [April 2018 (1)](https://info.ongandcompany.com/blog/archive/2018/04)
- [March 2018 (2)](https://info.ongandcompany.com/blog/archive/2018/03)
- [February 2018 (3)](https://info.ongandcompany.com/blog/archive/2018/02)
- [January 2018 (3)](https://info.ongandcompany.com/blog/archive/2018/01)
- [December 2017 (4)](https://info.ongandcompany.com/blog/archive/2017/12)
- [November 2017 (6)](https://info.ongandcompany.com/blog/archive/2017/11)
- [October 2017 (4)](https://info.ongandcompany.com/blog/archive/2017/10)
- [September 2017 (6)](https://info.ongandcompany.com/blog/archive/2017/09)
- [August 2017 (4)](https://info.ongandcompany.com/blog/archive/2017/08)
- [July 2017 (4)](https://info.ongandcompany.com/blog/archive/2017/07)
- [June 2017 (7)](https://info.ongandcompany.com/blog/archive/2017/06)
- [May 2017 (5)](https://info.ongandcompany.com/blog/archive/2017/05)
- [April 2017 (5)](https://info.ongandcompany.com/blog/archive/2017/04)
- [March 2017 (4)](https://info.ongandcompany.com/blog/archive/2017/03)
- [February 2017 (5)](https://info.ongandcompany.com/blog/archive/2017/02)
- [January 2017 (6)](https://info.ongandcompany.com/blog/archive/2017/01)
- [December 2016 (7)](https://info.ongandcompany.com/blog/archive/2016/12)
- [November 2016 (5)](https://info.ongandcompany.com/blog/archive/2016/11)
- [October 2016 (5)](https://info.ongandcompany.com/blog/archive/2016/10)
- [September 2016 (6)](https://info.ongandcompany.com/blog/archive/2016/09)
- [August 2016 (7)](https://info.ongandcompany.com/blog/archive/2016/08)
- [July 2016 (5)](https://info.ongandcompany.com/blog/archive/2016/07)
- [June 2016 (4)](https://info.ongandcompany.com/blog/archive/2016/06)

[See all](https://info.ongandcompany.com/blog/corporate-transparency-act#)

 © Copyright 2016 | Ong & Company. All rights reserved.

**