CTA FAQs
If you represent small businesses, you are likely aware of the Corporate Transparency Act (CTA) which went into effect on January 1, 2024. Understanding the intricacies of this Act and how it affects small businesses is crucial to your continued representation of these clients as failing to file or update the necessary report could result in civil or criminal penalties. Below are a few answers to FAQs to introduce the Act and its reporting requirements:
What is the Corporate Transparency Act?
The purpose of the CTA is to collect more ownership information for U.S. businesses as a means of combatting tax fraud, money laundering, and financing for terrorism. Enacted in 2021 but going into effect January 1, 2024, certain businesses must now submit a Beneficial Ownership Information (BOI) Report to the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN), providing details about those individuals associated with the company.
CLICK HERE FOR ATTORNEY MALPRACTICE QUOTE
This document should not be construed as legal advice. Because the facts applicable to your situation may vary, or the laws applicable in your jurisdiction may differ, please contact your attorney or other professional advisors if you have any questions related to your legal or medical obligations or rights, state or federal laws, contract interpretation, or other legal questions. Attorney Protective is a MedPro Group/Berkshire Hathaway company that protects the reputations and assets of attorneys across the nation. “Attorney Protective” and “AttPro” are also used as marketing names used to refer to the attorney professional liability programs administered by Attorney Protective or its affiliates and underwritten by National Liability & Fire Insurance Company, AttPro RRG Reciprocal Risk Retention Group, National Fire & Marine Insurance Company – each of which has earned an A++ financial strength rating from AM Best – or other Berkshire Hathaway affiliates. Product availability is based upon business and/or regulatory approval and may differ among companies. © Attorney Protective. All Rights Reserved. AttPro-240626