Corporate Transparency Act – Frequently Asked Questions
Who do I contact if I have additional questions?
How are Beneficial Ownership Information reports submitted to FinCEN?
Reporting companies will submit reports electronically through FinCEN’s Beneficial Ownership Secure System (BOSS). Reports will not be accepted prior to January 1, 2024.
Will the Secretary of State or similar offices collect beneficial ownership information?
No. The beneficial ownership information required by the Corporate Transparency Act should only be submitted directly to FinCEN through the online filing system at FinCEN.gov. To protect your privacy, you should not include this information when forming or registering the business with the secretary of state or similar office.
When does the CTA take effect?
The reporting requirements under the CTA come into effect on January 1, 2024. Business entities formed prior to such date will have until January 1, 2025, to comply with the CTA’s reporting requirements.
When is the initial Beneficial Ownership Information (BOI) report required to be filed with FinCEN?
A domestic reporting company formed prior to January 1, 2024, and an entity that registered as a foreign reporting company prior to January 1, 2024, must file an initial report by January 1, 2025.
Any domestic reporting company formed in 2024, must file a BOI report within 90 calendar days of either receiving actual notice that its formation has become effective or the secretary of state or similar office first providing public notice that it has been formed, whichever occurs first.
Any entity that becomes a foreign reporting company in 2024, must file a BOI report within 90 calendar days of either receiving actual notice that it has been registered to do business or the Secretary of State or similar office first providing public notice that it has been registered, whichever occurs first.
Reporting companies formed or registered on or after January 1, 2025, will have 30 calendar days to file their initial BOI reports after receiving actual or public notice that the entity has been formed or registered, whichever occurs first.
Is there a fee for submitting the BOI report to FinCEN?
No, there is no fee for submitting the BOI report to FinCEN.
What happens if a reporting company fails to report beneficial ownership information?
The CTA provides that willfully reporting or attempting to report false or fraudulent beneficial ownership, or willfully failing to report or make updates to the reported data shall be punished with a civil penalty of up to $500 for each day that the violation continues, or criminal penalties, including imprisonment for up to two years and/or a fine of up to $10,000.