Corporate Transparency Act – Beneficial Ownership Reporting

The Corporate Transparency Act (CTA) requires companies registered or chartered in or by a State (i.e. Florida) to report the following information:

1. Beneficial Ownership Reporting: Companies must report information about their beneficial owners, defined as individuals who either own 25% or more of the company’s ownership interests or have substantial control over the company.
2. Filing Deadline: This information must be filed at the time of company formation or registration, and updated within specified timeframes of any changes to the beneficial ownership. Existing entities have until the end of 2024 to file their initial report.
3. Exemptions: Certain entities are exempt, such as publicly traded companies, government entities, and companies that meet specific size and operational criteria.
4. Penalties for Non-Compliance: Failure to comply with the CTA can result in significant penalties, including fines and potential criminal charges.

It is important to note that filings under the CTA do NOT fall under the Internal Revenue Code and thus are NOT typically part of any tax return or corporate maintenance filing. The CTA filing requirements are separate and distinct from regular, annual, filings and most often require a separate engagement.