The Corporate Transparency Act: A Timeline of Key Dates and Deadlines
Introduction
The Corporate Transparency Act (CTA) is a new law that requires certain businesses to report their beneficial ownership information to the federal government. With deadlines fast approaching, it’s essential to understand what this means for your business and when you need to take action. DK Law Group is here to help you stay compliant with the CTA and avoid any penalties.
Key Dates and Deadlines
January 1, 2024: The CTA officially goes into effect. Any entity formed after this date must report its beneficial owners within 30 days of formation.
January 1, 2025: Existing entities have until this date to file their initial report. This includes all companies that were formed or registered before January 1, 2024.
Ongoing Reporting: Any changes in ownership or control must be reported within 30 days of the change.
What You Need to Know
The CTA applies to most U.S. corporations, LLCs, and other similar entities. The law aims to combat money laundering, terrorism financing, and other illegal activities by increasing transparency about who really owns and controls these entities.
Real-Life Example
A small business owner forms an LLC in March 2024. Under the CTA, they must report the beneficial owners of the LLC within 30 days. Failure to do so can result in significant fines and penalties.
Conclusion
Compliance with the Corporate Transparency Act is not optional, and missing key deadlines can result in costly penalties. At DK Law Group, we help businesses navigate these new requirements and ensure they meet all necessary deadlines. Contact us today to learn how we can assist with your CTA compliance.
At DK Law Group, businesses can rest assured that their compliance needs are expertly managed, avoiding the hassle, confusion, and potential penalties associated with the Corporate Transparency Act. For business inquiries or customer service, please call us at (443) 739-6724 or email us at diana@dklawmd.com. Your request matters to us.