Effective January 1, 2024, the Corporate Transparency Act requires many  companies to make reports with information about the company and individuals who exercise “substantial control” of the company with the Treasury Department’s Financial Crime Enforcement Network (FinCEN).

The reports are filed on-line and the process is relatively easy for a single company. For companies with subsidiaries, the process can be more complicated. There are exemptions, but most of those exemptions do not apply to a small business. There are both civil and criminal penalties if you do not comply with the filing requirements of the Act.

If your company was formed before January 1, 2024, you have until January 1, 2025 to file. The reports will need to be updated when changes occur. The reports will be available to some government agencies and banks with a customer’s consent. The reports will not be available to the public.

You should note that most HOAs would need to make reports. Nonprofit corporations that are exempt from tax under Int. Rev. Code § 501(c) will not need to file. Most condominium and community associations are not qualified under Int. Rev. Code § 501(c), but are subject to Int. Rev. Code § 528. Associations subjection § 528 will need to file reports.

Please schedule a consultation if you would like additional information about how the CTA can affect your business.