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Corporate Transparency Act: what you need to know

Published by Ronald Parisi on February 9, 2024

Staying ahead of regulatory changes is crucial in this ever-evolving business landscape . This month, we’re spotlighting the Corporate Transparency Act, offering a quick overview to help give some clarity on its essentials. Read on to find out more about Corporate Transparency Act, and what you need to know, at this time.

What is it?

  • Entities must register with the Financial Crimes Enforcement Network (FinCEN), a division of the Department of Treasury.
  • Requires reporting of beneficial owner details for those with over 25% ownership or significant control.

Key Dates for Compliance:

  • Existing entities: Register by January 1, 2025, a one-time process throughout 2024.
  • New entities: Report within 90 days of creation in 2024.
  • Changes or corrections: Within 30 days of any modifications.

Practical Tips for Business Owners:

  • Assess the number of entities you own for registration necessity.
  • Consider waiting until spring or summer to explore streamlined third-party reporting.
  • Obtain a FinCEN identifier for simplified reporting, especially with multiple entities.

Navigating the Corporate Transparency Act may seem a daunting task, but understanding the basics and strategically approaching the process will empower you to comply more efficiently. We hope we were able to provide you key items on what you need to know about the Corporate Transparency Act. Stay tuned for further insights and expert advice in the coming months.

CPA on Fire is a full-service CPA firm that specializes in building financial engines for fast-growing, 7 and 8-figure entrepreneurial companies. We offer far more than just vCFO services or specialized tax services. Our clients are driven, brilliant CEOs/Founders who are achieving great things. We provide companies a top-tier financial team at a fraction of the cost, enabling faster scaling and wealth maximization throughout. Like to know more? Download a copy Ron Parisi’s books Financial Superpowers and  The Entrepreneur’s Tax Playbook at it as a gift too! Available on Amazon

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