A new and little-publicized federal rule requires certain small and private companies to file ownership information or face potential penalties.

The Corporate Transparency Act (CTA), which went into effect on January 1, 2024, aims to combat illicit financial activity, including tax fraud and money laundering.

Under the new legislation, businesses that meet certain criteria must submit a Beneficial Ownership Information (BOI) Report to the U.S. Department of Treasury Financial Crimes Enforcement Network (FinCEN), providing details identifying individuals who are associated with the reporting company.

Applicable Companies: Continue Reading