New rules and regulations for US for-profit companies started before January 1, 2024, with 20 or fewer employees mean you have more paperwork to fill out by the end of the year. (Don’t worry. I hear it’s fairly painless. It’s focused on minimizing money laundering.)
The Corporate Transparency Act (CTA), aimed at combating illicit financial activity, went into effect on January 1, 2021. Under the act, small businesses in the United States need to file beneficial ownership information reports (BOIR) with the Department of the Treasury by January 1, 2025.
Failure to submit new paperwork by the deadline of January 1, 2025, puts small business owners at risk for criminal penalties, imprisonment, and fines up to $10,000.
While I’m never a fan of the conflation of “startups” and “small business,” this is definitely one of those occasions where startups need to pay attention.
For more information and guidance, visit the US Financial Crimes Enforcement Network Beneficial Ownership Information.
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