Earlier this year, the Corporate Transparency Act was enacted to prevent and combat illicit activity such as money laundering, tax fraud, and terrorist financing. The law aims to stop individuals from hiding their ownership of U.S. companies to facilitate illegal activities.

Following a series of legal challenges, it has been determined that the Corporate Transparency Act is legal and over 30 million small businesses in the United States are now required to file a Beneficial Ownership Report with FinCEN.

About CTA

The Corporate Transparency Act (CTA) is a federal law that requires certain companies to report information about their beneficial owners to the U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN). The CTA was enacted in 2021 as part of the National Defense Authorization Act and goes into effect on January 1, 2025.

The CTA applies to corporations, limited liability companies, and other similar entities that are registered or formed to do business in the United States. Companies that meet certain criteria must file a Beneficial Ownership Information (BOI) Report with FinCEN. This report includes personal identifying information about the company's beneficial owners and applicants.

Who Has to File?

Any domestic corporation/company with less than 20 full time and/or less than $5 million in gross receipts or sales must file a Beneficial Ownership Information Report.

You must have 20+ full-time employees AND greater than $5 million in sales to be exempt.

FinCEN has released a list of 23 entity types that are exempt from this filing requirement. Click here to learn more about the entity types that are exempt from this filing.

When Do I Have to File By?

All reporting companies must file their Beneficial Ownership Report by December 31, 2024.

Failure to file your report can result in late filing penalties of up to $500 per day.

How Do I File My Beneficial Ownership Report?

Reporting companies may file their report online on the FinCEN website by clicking here.

A number of service providers are also available online. The National Lumber & Building Material Dealers Association (NLBMDA) has partnered with Wolters Kluwer to provide filing assistance for members.

For more information about filing assistance from Wolters Kluwer click here.

*** Members are encouraged to exercise caution when selecting a BOI Filing Service – especially those found online. BLD Connection does not directly endorse any filing services and recommends the NLBMDA partner noted above ***

Other Resources:

• NLBMDA Corporate Transparency Act Resource Page
• FinCEN Beneficial Ownership Website
• BOI E-Filing System
• Beneficial Ownership Information FAQ

Free Webinar with NLBMDA

The National Lumber & Building Material Dealers Association (NLBMDA) will also be hosting a FREE informational webinar on November 7, 2024 at 12:00pm CT.

To sign up for the webinar, click here. All registered attendees will receive a recording of the webinar if you sign up and are unable to attend.

Questions

BLD Connection encourages all members to consult with legal council and/or your accountant for further guidance and/or to review the requirements of this law. For general questions, you may also contact BLD Connection President Cody Nuernberg at cody@BLDConnection.org.

Don’t delay! File your Beneficial Ownership Information Report today!