Is your entity subject to the Federal Corporate Transparency Act? Compliance is required by January 1, 2025
Posted Friday, November 22, 2024
The Corporate Transparency Act (“Act”) went into effect on January 1, 2024. Under the Act, entities, known under the Act as reporting companies, are required to report, online, the identity and certain personal information with the U.S. Department of the Treasury, specifically the Financial Crimes Enforcement Network (“FinCEN”). The Act applies to any entity which is required to file a document with a State entity in order to be in existence, such as corporations, limited liability companies, limited partnerships, limited liability partnerships, and any other entity formed by a filing or registered to do business with an agent of a State. For Wisconsin, that agency is the Wisconsin Department of Financial Institutions (“DFI”). This filing is different than the annual report filing required with DFI and affects many small business entities in Wisconsin.
Exemptions exist for some entities but do not assume your entity meets the requirements for exemption. Civil and criminal penalties exist for not complying with the Act.
For reporting companies formed prior to January 1, 2024, the filing under the Act must be done with FinCEN on or before January 1, 2025. For reporting companies formed on or after January 1, 2024, the filing under the Act must be done with FinCEN within ninety (90) days of the entity being formed.
In addition after the initial filing, all reporting companies must amend their report with FinCEN within thirty (30) days of the following events:
1. A change that affects who has 25% or more ownership or control of the entity, and
2. A change in previously reported information.
This post does not create any engagement of Nodolf Flory, LLP to represent any party regarding any specific reporting obligations under the Act. If you would like the firm’s assistance to represent you or your entity regarding compliance with the Act, please contact our office at: 715-830-9771 at your earliest convenience in order to make sure we can complete your filing prior to the deadline.
In addition to engaging our services to help you comply with the reporting requirement of the Act, you may also want to engage the firm to update certain entity governance documents to require that the individuals whose information you are obligated to report will provide that information to you.