The Corporate Transparency Act effects all corporations and LLCs with operations in the US: are you prepared to report, and do you have the support you need?
Last month, we were thrilled to partner with Sadek Law PLC to bring our members a Local First Webinar: Understanding the Corporate Transparency Act. Nichole Sadek of Sadek Law PLC shared invaluable information, clarifications, and guidelines surrounding the new CTA, which went into effect January of this year. Continue reading for a brief recap of the presentation and how to access Sadek Law’s resources.
Who is Nichole Sadek?
Nichole was raised by entrepreneurs and do-it-your-selfers. Her parents run a small business in her hometown, and she also married a small business owner, who is part of a family of business owners. Needless to say, Nichole has a passion for helping the unsung heroes of the world, the small business and the family unit.
It didn’t take long for Nichole to realize that law firms are actually no fun to work for and viewing her days in 6-minute intervals was soul-sucking for everyone involved. As a direct result of her discontent and intolerance for things that don’t work right, Sadek Law was founded with the mission of completely changing how people interact with legal services.
What is the CTA?
The Corporate Transparency Act (CTA) passed in 2021 with the goal of gathering information on companies doing business in the US to assist in the prosecution of financial crime. This is why the US Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) is heading up the process for business owners. If you are a reporting company, you will need to submit ‘beneficial ownership information’ (BOI) to FinCEN.
Reporting companies are:
- Corporation / LLC / Other entities created in the US by filing with the State or an Indian tribe
- A foreign company registered to do business in any US state or Indian tribe
If you are a reporting company established before January 1, 2024, then you have until the end of the year to comply. However, if your company started in 2024, you have 90 days to comply after registration. Those who do not comply within their deadlines receive daily fines of $500, up to $10,000.
Okay, I am a reporting company. What do I do now?
You can e-file your BOI at https://boiefiling.fincen.gov/. This is free and not difficult but will take a bit of time. For the full list of information that you will need to report on, review Nichole’s Cheat Sheet here. For a more extensive overview of the filing process, access Nichole’s PowerPoint Presentation here.
While this process can be self-guided, Nichole is here to help small businesses with any questions or difficulties (for free!). We encourage you to connect with her for any further clarifications and support. In the meantime, the full webinar can be viewed here on the Local First YouTube Channel.
The Local First program is dedicated to bringing webinar opportunities to our community. We cannot thank Sadek Law enough for their contributions both to this webinar and to supporting our communities beyond. Stay tuned for what’s next later this month, and in the meantime dive into these great resources!
