We have answers to the most
Frequently Asked Questions.
Our FAQs help you get informed and prepare for CTA Compliance.
The Corporate Transparency Act, or CTA, is a U.S. federal law that was passed in 2020. Its primary aim is to combat money laundering and the use of anonymous shell companies by requiring certain companies to report their beneficial ownership information to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN). The CTA is significant in the fight against financial crimes as it helps law enforcement agencies and regulators to better trace and identify the individuals behind potentially illicit activities involving anonymous shell companies. It aids in making it more difficult for criminals to hide their assets and financial dealings.
The CTA was enacted into law as part of the National Defense Authorization Act and went nto effect on January 1, 2024.
FinCEN Report’s software was developed to help reporting companies submit their beneficial ownership information (while safeguarding data privacy) and stay compliant.
Covered companies are required to report information about their beneficial owners, which includes individuals who own or control at least 25% of the company or exercise substantial control over its operations. A reporting company’s BOI report must include basic information about the company itself (such as its full legal name and state of organization) and personally-identifying information about its beneficial owners (such as legal name, date of birth, residential address and a unique identifying number, such as drivers license number or passport number).
There are 23 categories of exempt entities, ranging from issuers of public securities, certain non-profit organizations and entities that exceed specific revenue and employee thresholds. Exemptions can vary depending on the specific provisions of the law. Please talk to your attorney to determine if your company may be exempt.
Companies that fail to comply with the reporting requirements of the CTA may face civil and criminal penalties, including fines and imprisonment. Individuals who willfully provide false or misleading information may also be subject to penalties.
FinCEN Report is here to make the filing process easy so you don’t have to risk penalties associated with non-compliance.
While the CTA is aimed at increasing transparency in business ownership, it may raise concerns about the privacy and security of personal information. The law includes provisions to safeguard reported information and limit its disclosure to authorized entities.
Our FinCEN Report filing service has received a SOC-2 Type 1 report from an independent accounting firm that testifies to our data security and privacy compliance. Our platform is further certified by Breachlock with respect to data security and safety.
Our FinCEN Report filing service will help your company organize its reportable data. Once you have collected all the required information from your beneficial owners, you will be able to file your company’s initial BOI report directly with FinCEN through our secure filing service. You will receive a confirmation letter from FinCEN, confirming its receipt of your BOI report.
Our FinCEN Report service will securely save the data you included in your BOI report and will notify you if any of your beneficial owners change their personally-identifiable information in a way that requires you to amend your BOI report. You will be able to file your amended BOI report through our secure filing system with just a few clicks.
New companies formed on or after January 1, 2024 (but before January 1, 2025) must file an initial report within 90 days of formation. Companies existing before January 1, 2024 that are not exempt must report their beneficial ownership information no later than January 1, 2025.
If you own more than one company, or manage the compliance of many organizations, our system will be able to help you file for individual and/or multiple companies in the needed timeline easily and comprehensively.
Yes, the CTA applies to foreign-owned companies that conduct business within the United States and meet the reporting criteria. It is part of the U.S. government’s efforts to ensure transparency and prevent the misuse of anonymous entities for illicit purposes.
Our FinCEN Report platform can help foreign companies doing business in the United States file their initial BOI reports and remain in compliance with the CTA.
