The Corporate Transparency Act (CTA) is a federal law that went into effect on January 1, 2024, and it’s bringing some important changes that Oklahoma business owners need to be aware of. It aims to create a more transparent business environment by requiring companies to report detailed information about their beneficial owners. Local businesses in Enid, Oklahoma, need to understand how the new law affects them and how to meet deadlines and avoid penalties. This article will break down the basics of the CTA and how the experienced business lawyers from Outhier & Caruthers, PLLC, can provide the guidance you need to make your business thrive.
What is the Corporate Transparency Act?
The CTA is designed to combat financial crimes like money laundering and fraud. It requires businesses to disclose information about individuals with substantial control or a significant financial interest in the company. This information is reported to the Financial Crimes Enforcement Network (FinCEN), which is a bureau of the U.S. Department of the Treasury.
Understanding Beneficial Ownership
So, what exactly is beneficial ownership? In simple terms, a beneficial owner is any person who owns or controls at least 25% of the company’s interests. This could include major shareholders, senior officers, or anyone who has a significant influence over the company’s operations or finances. The CTA says that if someone has meaningful control over your business, their information needs to be reported and evaluated.
Businesses must report the full legal name, date of birth, current address, and identification number for each beneficial owner. For new companies, this information must be submitted within 14 days of formation. Existing companies have until January 1, 2025, to comply, and if there are any changes in beneficial ownership, they must be reported within 30 days.
Failing to comply with the CTA can result in hefty fines. Businesses that don’t meet the reporting requirements can face civil penalties of up to $500 per day until the violation is corrected. In more severe cases, criminal penalties can include fines of up to $10,000 and imprisonment for up to two years.
Complying with the CTA
To ensure your business complies with the Corporate Transparency Act, start by conducting a thorough internal audit to identify all beneficial owners and verify that their information is accurate and current. Develop a comprehensive compliance plan that outlines the procedures your business will follow to meet CTA requirements. Assign responsibility for compliance to a specific individual or team, and train employees on these procedures to ensure everyone is aligned with your compliance efforts.
Experienced Oklahoma Business Attorneys Can Help
The Corporate Transparency Act represents a significant shift for businesses in Enid, Oklahoma, and across the U.S. By understanding the requirements and taking practical steps for compliance, companies can avoid penalties and contribute to a more transparent and secure financial system.
For personalized assistance with CTA compliance, contact Outhier & Caruthers, PLLC, at (580) 234-6600. Our team of experienced business law attorneys is here to help you navigate these new regulations and ensure your business continues to thrive.
