As we bid September adieu, and head into the 4th quarter, I am reminded that filing for private companies under the Corporate Transparency Act (CTA) is due by year-end 2024.
Many small businesses are organized as single-member LLCs and may not be aware of or paying attention to the requirements of the CTA. This despite the efforts of Secretaries of State of the various states to publicize the act and urge business owners to file a BOIR (Beneficial Ownership Interest Report). Make no mistake, single-member LLCs are required to file under the act! The penalties for failing to timely file are burdensome!
The Corporate Transparency Act is a federal law that requires certain businesses to report information about their beneficial owners to the U.S. government. The CTA went into effect on January 1, 2024 and is intended to assist law enforcement in fighting money laundering, tax fraud, and other illicit activities.
This admirable goal is of course desirable! What is concerning, is the regime of penalties for failure to comply with the CTA.
Failure to properly comply with the reporting requirements of the CTA (essentially an accurate and timely filed BOIR), may result in civil fines of up to $591 per day, plus inflation. Criminal penalties may include a fine of up to $10,000 and/or up to two years in jail. These penalties make the CTA a matter to be taken seriously by business owners.
There are approximately 23 exceptions to the requirement to file a BOIR under the CTA, most related to the requirement to disclose information on companies under other government rules and regulations.
Don’t allow your company to fall victim to the penalties of the CTA. If you need help filing a BOI under the CTA, reach out to Doug Kennedy, Partner.CFOs2GO and the Finance Division of 2Go Advisory Group via email at dkennedy@cfos2go.com.
For your Talent needs in direct hire, full-time or part-time contract staffing, contact Executive Recruiter, Leesa Meintzer at leesa@2gorecruiting.com.
Doug Kennedy has years of experience working with ultra-high-net-worth families and the complex issues that confront them. He designs and leads the implementation of solutions for single-family offices. From a foundation of accounting and reporting processes to the broader needs of organization, staffing, and governance, he has experience in formulating workable solutions built around the objectives and values of a family and the legacy it leaves to society. Doug shepherds clients through a comprehensive process geared toward affirming and sustaining family values.
Leesa Meintzer is an executive recruiter with more than 20 years of experience in talent acquisition. She excels in partnering across various business functions and brings a comprehensive perspective to talent acquisition. She works with Engineering, Healthcare, Product, Finance, Accounting, Business Operations, Sales, Legal, Human Resources, Learning & Development, and Talent Acquisition for corporate and high-growth start-ups.
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2GO Advisory Group™ is a San Francisco Bay Area-based pioneer of fractional C-suite services. We leverage our consulting partners and recruiting to customize solutions across executive functions. Business owners and executives value our expertise which spans dozens of industry sectors and practice disciplines. With more than 35 years at the forefront of fractional executive services, our flagship CFOs2GO® has evolved to include COOs2GO™, CHROs2GO™, CIOs2GO™, CROs2GO™, and Talent2GO™. Our multidisciplinary approach helps organizations navigate change, enhance executive leadership, execute business strategy, and operate in both the U.S. and internationally. We use technology and a network of C-Level consultants to provide local representation in virtually every metropolitan community in the U.S. We strive to evolve to meet the emerging needs of clients at every stage of their business. Discover more on www.2goadvisorygroup.com and follow us on Linkedin at 2GO Advisory Group, CFOs2GO, COOs2GO, CHROs2GO, CIOs2GO, CROs2GO, and CMOs2GO.
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