Beneficial Ownership Information Reporting

The Corporate Transparency Act (CTA) is a federal law in the United States designed to enhance transparency regarding beneficial ownership. Its main objective is to tackle money laundering, terrorist financing, and other illicit financial activities by requiring certain entities to disclose details about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN), a division within the U.S. Department of the Treasury.

How do I File?

Please reach out to a ClarkHirth Team Member or submit the form below to begin the filing process.

Who is a Beneficial Owner?

To comply with the regulation, reporting companies are obligated to disclose information about their beneficial owners to FinCEN. A beneficial owner, as defined by the rule, is any individual who, directly or indirectly, either (1) exercises substantial control over a reporting company, or (2) owns or controls at least 25 % of the ownership interests of a reporting company.

Who needs to file?

The CTA establishes reporting requirements for a category of entities known as “reporting companies.” A domestic reporting company is a corporation, limited liability company (LLC), or any entity created by the filing of a document with a secretary of state or any similar office under the law of a state or Indian tribe.

What if I don’t file on time?

Non-compliance with reporting obligations can result in civil penalties of up to $591 per day, with a maximum fine of $10,000. In addition, criminal penalties could include imprisonment of up to two years.

When do I need to file?

Reporting companies have different filing deadlines depending on when they were formed or registered, as well as any changes to information about the beneficial owners:

  • The initial beneficial ownership report for companies formed or registered prior to January 1, 2024, must be submitted by January 1, 2025.

  • Companies formed or registered between January 1, 2024 and January 1, 2025, have 90 calendar days following notification to file their reports.

  • Companies that are registered or created after January 1, 2025, are required to submit their report within thirty (30) days of the effective date.