Business clients - Heads Up if you haven't taken care of the CTA yet

While the act says "Corporate" in the name, the requirement is fundamentally applicable to all non-exempt, for-profit entities, including limited liability companies (LLCs).

If you are in business, you may already be aware of the new reporting requirements mandated by the Corporate Transparency Act (CTA). The CTA requires non-exempt entities formed prior to 1/1/24 to file beneficial ownership information (BOI) reports by 1/1/25, and required new entities formed during 2024 that are not exempt from the reporting requirements to file a BOI report within 90 days. The reports must be filed electronically with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FINCEN) at fincen.gov/boi. There are potential civil and/or criminal penalties for non-compliance.

The BOI report must include information on all individuals with a 25% or greater ownership interest. Ownership interest can include equity, stock or voting rights, other instruments regardless of voting rights, capital or profits interests, convertible instruments or derivatives such as warrants, puts, calls or similar instruments (even if issued as a debt), and any other instrument, contract or arrangement to establish ownership.

If you would like assistance from Colorado Transaction Law to determine if you need to file, and/or with the filing itself, we are happy to help if we are specifically engaged by you or your company.