Tax Partner, HKA CPAs & Advisors
The Corporate Transparency Act was passed in 2023 and is applicable to most of our small business clients. This law will also apply to many individuals who hold assets in an LLC, even if they are not income producing assets. These businesses and individuals should be aware of the new requirements to fill out a Beneficial Owner Information (BOI) Report with FinCEN.
What is the CTA?
• The Corporate Transparency Act was implemented with the intent to provide the government with information that will help identify the owners of shell companies frequently used for criminal activities.
Who must file?
• Any entity formed, created, or registered within the United States that does not meet one of the 23 exemptions provided by FinCEN.
When must the report be filed?
• Entities created before 12/31/2023 have until 1/1/2025 to file the report.
• Entities created in 2024 will have 90 calendar days from the date of their formation.
• Entities create in 2025 will have 30 calendar days from the date of their formation.
What information will the reporting company be required to provide?
• Full legal name
• Any trade name or “doing business as” (DBA) name.
• Current U.S. street address
• State, Tribal, or foreign jurisdiction of formation
• Internal Revenue Service EIN
• State or Tribal jurisdiction of first registration, if a foreign reporting company
What information will the beneficial owner be required to provide? (Note: A beneficial owner is an individual who directly or indirectly owns or controls 25% or more of the ownership interest of a reporting company. They might also directly or indirectly exercise substantial control over it.)
• Name
• Date of Birth
• Address
• U.S. driver’s license, a non-expired U.S. passport, or a non-expired identification document issued by a State
Where is the report filed?
• Reports can be filed on the BOI website. Link https://www.fincen.gov/boi.
How can HKA help?
We will be including the BOI information report filing in our services for any new entity registration. For our existing clients, HKA will file this report on your behalf at your request. Our typical fee will be $500, however every client’s situation and complexity is unique. If your expected fee is higher than the standard $500, we will communicate this in advance of the engagement.
We will begin filing for current clients after the April 15th tax deadline. If you would like HKA to take care of the filing on your behalf, please contact us using the contact information below.
Please contact our office if you would like to engage us to file the report on your behalf. You can e-mail us at Office@Hkacpas.com or Call (314) 993-4285.