Corporate Transparency Act Attorneys For Alpharetta, Kennesaw And The Atlanta Area
The Corporate Transparency Act (CTA) is a new federal law that impacts companies nationwide. Below are questions that our attorneys at Lerman Law Associates, P.C., are receiving about the CTA:
What Is The Corporate Transparency Act?
The act uses new reporting requirements to shine light on the ownership and control of U.S. businesses. The purpose of the CTA is to combat financial crimes such as money laundering, terror financing and tax evasion.
Where Did The Act Come From?
The act arose from concerns regarding anonymous business ownership used to shield criminal activities. Congress passed the CTA in 2021 to bring more transparency to the control and ownership of businesses. CTA was included in the National Defense Authorization Act.
What Are The Requirements Under The Act?
The CTA mandates that certain businesses file a Beneficial Ownership Information (BOI) Report with the Financial Crimes Enforcement Network (FinCEN). The law took effect on January 1, 2024, requiring most corporations and limited liability companies (LLCs) to file a BOI report. Companies formed before January 1, 2024, must file a BOI before January 1, 2025.
How Do I File The Beneficial Ownership Information Report?
You can file electronically through FinCEN’s BOI E-Filing system by completing and uploading the document. You will need to disclose details about your beneficial owners, including names, dates of birth, addresses and ID verifications.
But Wasn’t The CTA Ruled Unconstitutional?
The CTA is a controversial piece of legislation and is currently in flux. On March 1, 2024, a federal district court ruled the Act unconstitutional. However, the ruling only applies to the specific plaintiffs in the case and does not eliminate the CTA.
How Does The Corporate Transparency Act Affect A Georgia LLC Based In Alpharetta?
Many Georgia LLCs in Alpharetta may be required to file a Beneficial Ownership Information (BOI) report with FinCEN under the Corporate Transparency Act. The requirement generally applies to smaller privately held companies unless a specific exemption exists.
A beneficial owner is typically someone who owns at least 25% of the company or exercises substantial control over its operations. The report requires identifying information for these individuals, including legal names, addresses and government-issued identification details.
Because exemptions are highly fact-specific, business owners should carefully evaluate whether their company qualifies for an exception. We help determine whether your Alpharetta LLC is subject to the reporting requirements and assist with compliance questions before filing deadlines arrive.
Do Real Estate Holding Companies In Kennesaw Need To File A BOI Report Under The CTA?
In many cases, yes. Real estate holding companies formed as LLCs or corporations in Kennesaw may be required to submit a BOI report if they do not qualify for one of the CTA’s exemptions.
Many real estate investors assume that owning property alone exempts them from reporting requirements. However, the analysis depends on the structure of the company, the number of employees, annual revenue and other factors outlined by federal regulations.
Single-purpose entities created to hold rental properties, investment properties or commercial real estate often need to review their reporting obligations carefully. Failure to evaluate these requirements properly could expose the company to unnecessary compliance risks. We can review your business structure and determine whether your real estate holding company falls within a reporting exemption or must file with FinCEN.
What Happens To An Atlanta Small Business That Misses The FinCEN Reporting Deadline?
Missing a FinCEN reporting deadline can create significant problems for a small business. Federal law authorizes substantial civil penalties for willful reporting violations, and certain situations may expose business owners to criminal penalties.
Beyond potential fines, missed filings can create uncertainty when seeking financing, completing transactions or responding to regulatory inquiries. Business owners who discover a missed deadline should promptly address the issue and determine what corrective steps may be available.
Because CTA requirements continue to evolve through ongoing litigation, it is important to stay informed about current obligations. We can help Atlanta-area business owners assess their compliance status, identify potential risks and develop a plan for addressing missed or upcoming reporting requirements.
Learn More With A Free Consultation
Attorney Craig Lerman has a master’s degree in business administration and years of legal experience, which brings additional value to his business clients. Whatever your company’s needs regarding the CTA, our attorneys can provide insight and guidance. Are you unsure if the CTA applies to your business, or are you having trouble filing? Contact our firm, Lerman Law Associates, P.C., today by dialing 678-888-5773 for a free consultation to discuss your specific CTA concerns.