Corporate Transparency Act

Attention small businesses: PLEASE READ Corporate Transparency Act

**This is the email mentioned at the CDBIA general membership meeting. While attending meetings at the National Association of Home Builders, leaders expressed the importance of making sure all business owners are aware of the Corporate Transparency Act. If your company is a reporting company, and you do not react by the deadlines to file a beneficial Ownership Information Report (BOIR) , your company may be fined up to $500 a day.

Please make sure this is forwarded to your company’s business owner(s). If you are the business owner this is vital information you may need to review and take a moment to file the information.

Corporate Transparency Act

Starting Jan. 1, 2024, many businesses will be required to report beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN) to identify those who directly or indirectly own or control the company.

The National Defense Authorization Act for Fiscal Year 2021 enacted the Corporate Transparency Act (CTA) to require America’s small and independent businesses to file beneficial ownership information with FinCEN. The CTA helps the U.S. government identify money laundering, corruption, tax evasion, drug trafficking, fraud and other crimes. Congress passed the CTA to make it harder for these illegal activities and their perpetrators to hide from law enforcement officials.

Reporting Companies. A reporting company is:

• A corporation, Limited Liability Company (LLC) or similar entity that:
• Has 20 or less full-time employees; or
• Filed federal income taxes in the previous year demonstrating $5 Million Dollars in gross receipts or less; and
• Do not qualify as an exempt entity.

If this applies to your companies, here is what you will need to do:

• If your company was opened after January 1, 2024, you have 90 days to complete this information. If your company was opened prior to January 1, 2024 you have until January 1, 2025 to complete this information.
• Go to: https://www.fincen.gov/boi
• Direct link is available at https://boiefiling.fincen.gov/
• You will need to upload the following information for any shareholder that more than 25% ownership of your company:
• Name
• Date of birth
• Identifying ID (such as a driver’s license or state issued ID number or passport number)

Important information:

Phishing alerts

NAHB also shared there are hacker emails and phishing alerts being sent out. Please be careful opening up any emails that ask you to click on links.

NAHB also has a recorded video to explain more information about the Corporate Transparency Act. Click here to View a recording of the NAHB webinar “New Beneficial Ownership Requirements: What Small Business Owners Need to Know,” featuring FinCEN‘s David King.

Additional information about this is available at https://www.nahb.org/advocacy/legal-issues/corporate-transparency-act-beneficial-ownership-reporting

If you have any questions about this information, you are welcome to speak with your attorney or accountant.

Thank you for reading through this. We welcome you to share this information with any small business owner you may know.