What to Know About the Corporate Transparency Act (CTA)

We want to inform you about the Corporate Transparency Act (CTA) and its Beneficial Ownership Information (BOI) Reporting requirement, which may impact your entity’s compliance obligations.

Here’s what you need to know:

• Who Needs to Comply: Entities organized in the U.S. or abroad, including corporations, LLCs, and similar entities, may need to report under the CTA.
• Exemptions Exist: There are exemptions for certain entities, including publicly traded companies, banks, and tax-exempt organizations. Also, “large operating entities” meeting specific criteria are exempt.
• Defining Beneficial Owners: Individuals with substantial control over a reporting company or owning at least 25% of ownership interests must be disclosed.
• Filing Deadlines: Deadlines vary based on entity registration/formation dates and changes to beneficial ownership information. If your entity existed before January 1, 2024, you have until December 31, 2024 to complete the entity registration and reporting. If your entity was formed after January 1, 2024, you have 90 days from the date of formation to complete the entity registration and reporting.
• Required Information: Entities must report details like full name, business address, and IRS taxpayer identification number, along with beneficial owner information.
• Risk of Non-Compliance: Non-compliance may lead to significant penalties, including fines and potential jail time.

For more details, visit the AICPA-CIMA BOI page and don’t hesitate to reach out with any questions or concerns. We’re here to help you navigate these regulatory changes and ensure your business stays compliant.

If you would like professional assistance with this reporting requirement from our tax partners at Trainer, Wright & Paterno, click here to submit the form and a member of the team will reach out to you.

Disclosure: The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. Concord Wealth Partners, LLC (“CWP”) and Concord Asset Management, LLC (“CAM”) are affiliated with Trainer, Wright & Paterno (“TWP”) through common ownership. CWP provides investment advisory services and may provide such services to TWP clients. CWP does not provide tax or accounting services. TWP is not involved in providing investment advice on behalf of CWP, nor does TWP hold itself out as providing advisory services on behalf of CWP. No client of TWP is under any obligation to use the services of CWP. CWP shall not receive any portion of the fees charged by TWP, referral, or otherwise. It is anticipated that TWP professionals, solely incidental to their respective practices as CPAs of TWP, shall recommend CWP’s services to certain clients. More information about Concord Wealth Partners and the firm’s relationship with TWP can be found at https://custom.concordwealthpartners.com/.