You may already be aware, but if not, we wanted to give you a snapshot of what the new Corporate Transparency Act will require for those who have business entities starting on January 1, 2024.

Navigating the Corporate Transparency Act – Quick Facts:

  • Entities that need to file:  LPs, LLCs (including single member LLCs), and Corporations
  • Objective of the Act is to obtain and understand who the legal owner is down to the individual who controls the company to prevent money laundering, tax evasions & illegal activity
  • There is an exemption for certain inactive entities and for companies with over 20 employees that reported more than $5mm in gross sales previous year + other criteria
  • Penalties for non-compliance with the Act are $500/day up to $10,000 for late filing
  • Filing deadlines:
    • Pre-existing entities by December 31, 2024
    • Entities filed after 1/1/24 – 90 days
    • Entities filed after 1/1/25 – 30 days
  • Need to refile with each change of information
  • Inactive/abandoned entities are exempt but are recommended to be dissolved
  • The beneficial owner is the person who directly or indirectly exercises “substantial control” and owns or controls 25% or more of the entity
  • Filing requirements:
    • Legal name, physical address (no PO Box), jurisdiction of formation, Federal Tax ID
    • Individual: DOB, home address, identification needed such as US passport, driver’s license or state/local/tribe ID – need a copy of identifying ID


If you would like our help complying with the new Corporate Transparency Act for your corporation, LLC or LP, please contact our Intake Department at (760) 448-2220 or at [email protected].

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