There is a new requirement that affects most small business entities that are registered with their state. The Corporate Transparency Act (CTA) was passed in 2021, and an estimated 32.6 million entities will need to file reports in 2024. Iowa State University’s Center for Agricultural Law and Taxation has a web page that describes some aspects of this new law. The Department of the Treasury has provided a four-page brochure about the CTA.
Existing entities will have until January 1, 2025, to make their first beneficial ownership information (BOI) report. Entities first created or registered in 2024 will have 90 days from creation to get their first reports filed. Any entity that has already filed a report will generally have 30 days to make updates required by the CTA.
Because advising clients regarding compliance with the CTA may be considered the practice of law, we urge you to consult legal counsel if you have questions about this act. Our firm is not currently providing any services regarding the CTA, and expressly disclaim any responsibility for providing any advice or assistance to anyone in relation this act.