What is the Corporate Transparency Act and does it affect my LLC?

The Corporate Transparency Act (CTA) requires most LLCs and corporations to report their beneficial owners to the Financial Crimes Enforcement Network (FinCEN). If your LLC was formed before January 1, 2024, you must file a Beneficial Ownership Information (BOI) report. New LLCs formed in 2024 or later must file within 90 days of formation.

The BOI report requires: full legal name, date of birth, residential address, and a government-issued ID number for each beneficial owner (anyone who owns 25%+ or exercises substantial control). Exemptions exist for companies with over $5 million in revenue and 20+ employees, publicly traded companies, and certain regulated entities. Penalties for non-compliance are severe: $500/day civil penalty (up to $10,000) and potential criminal penalties of up to 2 years imprisonment. The report is filed through FinCEN's BOI E-Filing system at boiefiling.fincen.gov and there is no filing fee.