A recent ruling by the U.S. Fifth Circuit Court of Appeals has reinstated requirements under the Corporate Transparency Act (CTA), directly impacting many small businesses, including those in Mesa County. This federal law is designed to combat financial crimes like money laundering by requiring businesses to file Beneficial Ownership Information (BOI) reports. These requirements add new administrative responsibilities for many local businesses.
What Is the Corporate Transparency Act?
The CTA was enacted to improve transparency and prevent financial crimes by requiring businesses to disclose key information about their owners. The law applies to most U.S.-based businesses, including corporations and LLCs.
However, there are exceptions for publicly traded companies, nonprofits, and larger businesses that meet all the following criteria:
- Have 20 or more employees,
- Generate $5 million or more in annual revenue, and
- Maintain a physical office in the U.S.
Sole proprietors and unregistered partnerships are typically exempt. If you’re unsure whether your business needs to comply, consult a professional and review the 23 exemptions. Explore the exemptions list here.
Key Compliance Deadlines
The court’s ruling reinstates BOI reporting obligations with updated deadlines:
- Businesses formed before January 1, 2024: File your initial BOI report by January 13, 2025.
- Businesses formed on or after January 1, 2025: File your BOI report within 30 days of registration.
Special considerations apply for businesses formed between September 4, 2024, and December 23, 2024, or those affected by disaster relief. For additional details, visit How to File Your BOI Report.
What Information Do You Need to File?
Businesses must report information about individuals with significant ownership or control, including:
- Full legal name,
- Date of birth,
- Current residential address, and
- A unique identification number (e.g., from a driver’s license or passport).
Reports must be submitted to the Financial Crimes Enforcement Network (FinCEN) using their secure online system.
Consequences of Non-Compliance
Failure to comply with the CTA can result in severe penalties:
- Civil penalties: Up to $500 per day for late or inaccurate filings.
- Criminal penalties: Fines up to $10,000 or imprisonment for up to two years for willful violations.
These penalties can have devastating financial and reputational impacts, particularly for small businesses. Compliance is not just a legal requirement—it is critical for protecting your business from avoidable risks.
Resources to Help You Comply
The Grand Junction Area Chamber of Commerce is here to support you. For more information and helpful resources, explore the following:
Need Assistance?
If you have questions or need guidance, the Grand Junction Area Chamber of Commerce is here to help. Email us at [email protected] for support. Taking proactive steps now will ensure you avoid penalties and stay on track with these new requirements.