Legal Analysis: Highlights from February 2024

Corporate Transparency Act: What Every Small Business Needs to Know

By Laura Watts
Updated March 18, 2024

If you own a business, you might have received a notice from your Secretary of State’s office informing you of your requirement to file a beneficial ownership report with the United States Department of the Treasury’s Financial Crime’s Enforcement Network in compliance with The Corporate Transparency Act enacted by Congress on January 1, 2021, as part of the National Defense Authorization Act.

If reading that causes you to scratch your head, you’re not alone. Many of our Myatt & Bell business clients have reached out with questions and concerns.

First, it is important to highlight that this is a federal law. Accordingly, the annual report that your business files with the state is not sufficient to meet this new mandatory federal requirement.

While there is no fee to file a beneficial ownership report (“BOIR”), the fine for failing to comply is a civil penalty of up to $500 per day. Consequently, this is not something you should ignore. Businesses established after January 1, 2024, are required to submit the BOIR to FinCEN within 90 days of their formation. Businesses formed prior to January 1, 2024, have until January 1, 2025 to complete this filing. Businesses formed after January 1, 2025, are required to submit the BOIR to FinCEN within 30 days of their formation.

You might be wondering, what is the purpose? In a nutshell, the Financial Crime’s Enforcement Network’s (“FinCEN”) primary mission is to safeguard the financial system from illicit use. The Corporate Transparency Act’s (“CTA”) reforms are intended to crack down on money laundering and other related illegal activities like terrorist financing, corruption, and tax fraud. To illustrate, many individuals form businesses to hold things such as a title to property, but do not otherwise carry-on significant business operations. These are often referred to as “shell companies.” Most shell companies are formed for legitimate purposes, and historically, the requirements to disclose the companies’ members have been lax, allowing the owners to remain anonymous. The CTA’s reforms require better disclosure of business owners to prevent bad actors from using shell companies in furtherance of various crimes. In other words, the federal government wants to know who you are, that you’re running a legal business, and that you are paying your taxes.

If you are saying, “Gee, I just don’t have time to deal with all of that,” we have good news for you: Myatt & Bell has you covered.

We will file the BOIR on behalf of your company, or companies, starting at $400 for the first business and $75 for each additional business.[1]

Get Help Today
Our team is ready to assist you. To get started:

[1] Additional fees may apply for businesses with more complicated ownership structures.

Estate Planning & Peace of Mind

Have you found yourself making excuses for why not to get your estate in order? Maybe you’re convinced that you really don’t need estate planning. If you have assets and loved ones, you need an estate plan. Having an estate plan that is right for you ensures your loved ones are taken care of and that the transition is as easy as possible.

Attend one of our complimentary estate planning webinars and see for yourself. Having your estate plan prepared and understanding the why’s behind the importance of estate planning can bring you the peace of mind you have been needing. Join us at our next Estate Planning Informational Webinar by clicking here.

From Our Clients

“Careful, thorough work. Very responsive and knowledgeable. Bonus points for a great disposition! We highly recommend Bryce Kaufman and the support staff at Myatt & Bell.” – Theresa E.

“We began working with Myatt & Bell when my mom wanted to update her will and create a trust (probably 10) years ago. She passed in 2021. We were well supported through the legal requirements of managing her estate, will and trust, before and after her passing. Some years earlier, we engaged them as our estate attorneys. With their guidance, I am confident that my children will be well protected when my time here ends.” – M.K.

Families choose Myatt & Bell to design their estate plans with honest optimism and meticulous attention to detail.

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And, if you run into someone who needs help with a will or trust, please tell them about Myatt & Bell. Thank you!

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