Business owners, are you sure you’re in compliance with the Corporate Transparency Act? In January, penalties will begin if you haven’t filed an initial report with your ownership details.

The Corporate Transparency Act (CTA), enacted in 2021, aims to curb illicit activities such as tax fraud, money laundering, and terrorist financing by requiring more detailed ownership information for certain U.S. businesses. Under this legislation, businesses that meet specific criteria must file a Beneficial Ownership Information (BOI) Report with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN), identifying individuals linked to the reporting company.