• New businesses have 90 days; existing have until December 31.
Heath Hirschi, an attorney with 18 years of experience who recently joined the Law Offices of Luthi and Voyles, stopped by SVI Media as part of the Weekday Wakeup to discus a new law that will affect most area businesses.
According to Hirschi, the Corporate Transparency Act (CTA) became the law of the land at the start of the new year.
“This is affecting businesses across the country,” he said. “The purpose is to try and deter money laundering through the use of shell companies. It requires businesses to file reports to the federal government disclosing information about the business itself and those who own the company or those who make decisions for that company.”
The Business Ownership Information (BOI) report will be required by most businesses including LLC’s. “Businesses that are formed by filing with the State as an LLC and such,” Hirschi added. “Large companies, or those who have more than 20 full time employees or over $5 million in revenue don’t have to file. Banks, insurance companies, they are not required. But if you are not in an exempt category, you will need to file online with the Department of the Treasury.
The the BOI report can be filed at FinCen.gov.
“The form isn’t that complicated,” Hirschi said. “It’s not an annual filing. It’s a one-time filing. The catch is, any information you file on your original report, if that changes, you have to go back and file those changes.”
The deadline for existing business to file this report is December 31. However, businesses that have been formed since the start of the 2024 calendar year have 90 days from the date of their formation.
Some are questioning how effective it will be in deterring crime and feel it’s putting undo burden on business owners. No matter how you feel it is the law of the land now.
If you are taken aback by this information, Hirschi isn’t surprised. He feels the U.S Government should be doing more to get the word out.
“I found out about this through continuing education and such,” he continued. “But I’m not seeing a lot of information out there so people know about it. There are civil penalties of $500/day for late filling and potential criminal penalties too. $10,000 in fines and up to two years in prison. The government should be doing more to let business owners know but that’s why we are bringing it up.”
Hirschi also stated that if you have questions he is willing to help by contacting Luthi and Voyles.
“You can fill it out directly online or print out a pdf and then scan it,” he concluded. “If people have questions, I’m happy to do consultations.”