Authored by: Stephen R. Elville, J.D., LL.M. – Managing Principal and Lead Attorney
Summertime fun and visions of running through daisies in slow motion – NOT!
It’s another perfect June day as I write this brief blog. Many of us who love summer take to the warm air like fish to water and count each day as a bit of nirvana. But not so fast! Having presented on the Corporate Transparency Act twice in the past week and a half, my brain is on overload trying to figure out how in the world attorneys, CPAs, financial advisors, CFOs, and other professionals will be able to disseminate the nature, origin, purpose, critical definitions, requirements, and who is to report and who is exempt, both now and by the end of 2024 to save clients, business owners, family, friends, and those in spheres of influence, from the embarrassment and penalties for non-compliance with the CTA.
If you are like me, having to discuss and deal with the Corporate Transparency Act is akin to having to go to the dentist on a rainy day, something unpleasant mixed with a healthy amount of uncertainty. Well, we may as well reach for some form of mental analgesic, or laughing gas, your choice, and face the music.
If you or anyone you know has formed an LLC or other entity that is required to report under the Corporate Transparency Act, compliance is required within 90 days of that formation in 2024. For those persons required to report for entities formed prior to 2024, reporting must occur prior to December 31, 2024. And lastly, for those required to report for entities formed after January 1, 2025, reporting must occur within 30 days. Penalties of up to $500 per day, unlimited, for noncompliance apply, and criminal penalties of up to $10,000 apply.
The Corporate Transparency Act is no joke, and as we are now at mid-year 2024 it’s essential that the requirements of this new law designed to combat money laundering, terrorism, and fraud, be disseminated as widely as possible.
Whether you are planting daisies this summer or running through fields of them, be sure not to trip up by failing to understand the reporting requirements of the CTA because doing so could hurt.
If you would like to know more about the Corporate Transparency Act, please reply by clicking this link contact us, and we will be happy to send you a link to my recent webinar about this important issue.