Corporate Transparency Act Tips for Small Business Owners
Get tips on navigating the Corporate Transparency Act for small businesses from Jeffrey Levine. Stay informed to avoid penalties. Watch Ask The Hammer on FinStream TV.
Key Takeaways
- File your beneficial ownership information by December 31, 2024 if your business existed before 2024—this deadline is fast approaching and violations can result in significant civil penalties or criminal prosecution
- Identify all individuals with either ownership stakes (economic interest) or key decision-making control in your company, as the federal government requires knowing who truly controls each business entity
- Budget time to gather documentation now if your ownership structure is complex (trusts, multiple entities, corporate shareholders), as you may need to consult an attorney for proper compliance
- Plan for ongoing compliance: while this isn't a one-time filing, you only need to report updates when beneficial ownership or control actually changes, not annually if nothing changes
- Don't assume simple ownership structures are automatically compliant—new rules often generate unexpected errors due to unfamiliarity, so verify your filing is complete to avoid penalties
Corporate Transparency Act Tips for Small Business Owners: In this episode of Ask The Hammer, Jeffrey Levine of Buckingham Wealth Partners provides insights on the Corporate Transparency Act (CTA), a new law requiring millions of US companies, including small businesses, to file beneficial ownership information by January 1, 2025. This legislation aims to combat money laundering and increase transparency by identifying who truly owns and controls businesses.
Key points from Levine's commentary:
1. Existing businesses must comply by the end of 2024, with different deadlines for companies started in or after 2024.
2. The Act requires reporting of individuals who have ownership or control over a company, either through economic interest or as key decision-makers.
3. Information will be stored in a secure, private database not accessible to the public.
4. Complexity of filing depends on the business structure, with larger companies potentially needing legal assistance.
5. Penalties for non-compliance can be severe, including civil penalties and potential criminal prosecution for intentional fraud.
6. While initial filing is required, updates must be submitted when ownership or control changes.
Levine emphasizes that business owners should familiarize themselves with the CTA requirements and prepare to file before the deadline to avoid penalties. He also notes that the newness of these rules may lead to confusion, making it crucial for owners to stay informed and seek assistance if needed.
Watch this video to learn Corporate Transparency Act Tips for Small Business Owners. Find more episodes of Ask The Hammer on FinStream TV at this link: https://www.finstream.tv/videos/ask-the-hammer/
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