ATTENTION: Have You Complied with The Corporate Transparency Act?

Couple meeting with a man and a laptop
October 16 2024

I last wrote about the Corporate Transparency Act (CTA) in the Spring 2024 edition of the Bruning Bank Newsletter. Despite the hope for overturn or repeal, you need to prepare to file on time. In review, the CTA was introduced as part of the National Defense Authorization Act for Fiscal Year 2021. Its primary goal is to combat the misuse of anonymous shell companies by requiring companies to disclose their beneficial owners to the Financial Crimes Enforcement Network (FinCEN). 

The entities subject to the CTA include most privately held corporations, limited liability companies, limited partnerships and other similar entities, regardless of whether they are domestic or foreign. The beneficial ownership information report required to be filed by the reporting companies discloses certain information about the company’s owners, management and individuals who assisted in the creation of the company. Beneficial owners are defined as individuals who own or control at least 25% of the company or have significant control over the company’s operations. Presently the CTA specifically sets forth 23 exemptions to its definition of “reporting company” and these along with detailed instructions as how to file and FAQ’s can be found at www.fincen.gov/boi and www.fincen.gov/boi-faqs. 

FinCEN launched the BOI E-Filing website for reporting beneficial ownership information (https://boiefiling.fincen.gov) on January 1, 2024.

  • A reporting company created or registered to do business before January 1, 2024, will have until January 1, 2025, to file its initial BOI report.

  • A reporting company created or registered in 2024 will have 90 calendar days to file after receiving actual or public notice that its creation or registration is effective.

  • A reporting company created or registered on or after January 1, 2025, will have 30 calendar days to file after receiving actual or public notice that its creation or registration is effective.

  • Please note that BOI reporting is not an annual requirement, however any updates or corrections to beneficial ownership information you previously filed with FinCEN must be submitted within 30 days.

To ensure adherence to the CTA, the updated legislation has introduced stricter penalties for non-compliance. Companies that fail to report accurate beneficial ownership information or neglect to update changes face substantial fines and potential criminal charges. The fines can reach up to $500 per day for each day of non-compliance, with a maximum penalty of $10,000, and potential imprisonment for willful violations.

This article is simply an update to assure you are aware of this new regulation and that if you haven’t already filed your BOI report you should act now. I would encourage you to refer to the links provided within this article and/or below to gain further information about this new law and how to comply. I would also encourage you to contact your attorney to file the required information if you should need assistance. 

www.fincen.gov/boi

www.fincen.gov/boi-faqs

 

-Kyle Anderson, Senior Executive Commercial Lender-

“We may never understand His wisdom, but we simply have to trust His will.”

Sonny Manley
President
Hebron

“Be kind because everybody is dealing with something you know nothing about.”

Jim Scott
President
Broken Bow

“Part of attaining success is surrounding yourself with people that share the same drive, determination and direction that you want to achieve.  I feel the people we hire at Bruning Bank represent those assets and they strive to help our customers build, grow and thrive in business as well as personal endeavors.” 

Todd Clabaugh
President
Kearney

"You’ve heard this before, '50% of success in your life comes from just showing up, more precisely showing up on time and being there when you are supposed to be.' That does not apply only to financial success it applies to everything. Your persistence in being there and being present and engaged in your family, your church and your work/career, you don’t have to talk a good game to be successful, you need to do. If you show-up, you're half way there.  And when you show-up, help will be available to get you the rest of the way.  Thanks to all of you that show-up!" 

Jerry Catlett
President & COO
Bruning

“At Bruning Bank, we are about building relationships. If you walk through our doors, we want you to feel like family. Whether it is your first time in, or you are a long-established customer, we want your experience to be positive, insightful, and lasting. The people we employ are vital in this role and do an amazing job carrying out the values and mission established by the bank. I truly feel this is what sets Bruning Bank apart from other institutions.“

Luke Thorell
President
Holdrege