April 21, 2024

22 Apr 2024 · 1 min

Watch on YouTube

1:01

In this brief informational segment, the speaker warns small‑business owners—particularly those operating LLCs, corporations, limited partnerships, or similar entities—about the Corporate Transparency Act (CTA) that took effect on January 1, 2024. The CTA mandates that both domestic and foreign entities report identifying information about the entity and its beneficial owners to the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN). The speaker emphasizes that the reported data will not be publicly accessible, eliminating anonymity for many LLCs. Non‑compliance carries steep penalties: daily fines of about $500 and potential imprisonment of up to two years. The act’s purpose is to combat money laundering, terrorist financing, and other illicit activities.

Chapters

If you have an LLC, this is going to cost you $500 a day in 2024 and up to 2 years in prison if you violate this. This is a huge change for small businesses. So if you have an LLC, you must pay attention. On January 1st, 2024, the Corporate Transparency Act goes into effect. Under this new act, domestic and foreign companies will be required to disclose information about their beneficial owners. This act was passed to combat money laundering, terrorist financing, and other types of illegal activity. So if you have a corporation, an LLC, a limited partnership, or any other type of similar entity within the United States, you will be subject to this new act. You're going to be required to provide identifying information about the corporate entity as well as the owner. The information will have to be provided to the US Treasury's Financial Crimes Enforcement Network. The information will not be publicly available on any database. This will certainly not benefit those of you who have formed LLCs for purposes of anonymity.