Important Reminder: Deadline for Corporate Transparency Act Compliance - December 31, 2024

In September 2023, the Financial Crimes and Enforcement Network (FinCen) issued its final rules for compliance with the Corporate Transparency Act (CTA) and these rules are now in effect. These rules require all non-exempt businesses which are formed under U.S. law, or registered to do business in the U.S., to file a report with FinCen with certain information, including the beneficial owners of the business. A more comprehensive discussion of the requirements under the CTA can be found at https://www.klemchuk.com/ideate/reporting-under-corporate-transparency-act.

The deadline for filing a beneficial ownership information report under the CTA for all business entities formed prior to this year is December 31, 2024. This filing is required for all non-exempt “reporting companies” as defined under the CTA. While these rules are currently the subject of a lawsuit, there can be no assurance that the lawsuit will be resolved before the filing deadline under the CTA.

If you are the representative of one or more entities formed before January 1, 2024, this notice is to ensure you are aware of your potential filing obligations under the CTA. The law took effect on January 1, 2024, and unless an exemption applies, your company will be classified as a reporting company, requiring you to submit a beneficial ownership information report.  The information required to be filed for beneficial owners includes certain information, such as name, address, and a governmental photo identification for each beneficial owner of a non-exempt “reporting company”. Failure to file the report could result in significant fines. Also, non-exempt companies have an on-going requirement to keep all the information current and to file any changes within 30 days.

We encourage you to consider how this requirement may affect your business interests, including any entities you own or control, such as corporations, limited liability companies, limited partnerships, certain trusts, and other similar entities. Most existing business entities will need to file unless they are exempt. If this applies to your business interests, you should start gathering the necessary information and file your report by the deadline.

If you need additional information on this requirement, you can find detailed information at the FinCen website: https://fincen.gov/boi. Should you need assistance with the filing, we encourage you to contact your accounting professional for help.

Klemchuk PLLC is a leading IP law firm based in Dallas, Texas, focusing on litigation, anti-counterfeiting, trademarks, patents, and business law. Our experienced attorneys assist clients in safeguarding innovation and expanding market share through strategic investments in intellectual property.

This article is provided for informational purposes only and does not constitute legal advice. For guidance on specific legal matters under federal, state, or local laws, please consult with our IP Lawyers.

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