2024 Federal Requirement: The Corporate Transparency Act requires businesses to file FinCEN’s Beneficial Ownership Information Report. Get the eBook for Firms & Filers

Corporate Transparency Act and BOI Report Filing for Registered Agents

Discover how registered agents can efficiently navigate the requirements of the CTA and facilitate the filing of Beneficial Ownership Information (BOI) reports.

The Corporate Transparency Act, signed into law on January 1, 2021, marks a significant shift in the United States’ approach to combating money laundering, terrorism financing, and illicit financial activities. 

Its primary objective is to enhance transparency in corporate ownership and control, making it challenging for individuals and entities to obscure their financial interests behind anonymous shell companies.

The Corporate Transparency Act introduces several crucial provisions:

  • Reporting Beneficial Ownership Information (BOI): The CTA mandates that certain business entities, known as “reporting companies,” must submit Beneficial Ownership Information reports to the Financial Crimes Enforcement Network (FinCEN). These reports contain comprehensive details about individuals who either directly or indirectly own or control the reporting company, including names, addresses, and unique identifying numbers.
  • Reporting Thresholds: Reporting companies subject to the CTA must file Beneficial Ownership Information reports upon formation or registration and annually thereafter. Specific reporting thresholds are established, requiring disclosure of 25% or more ownership interests in the reporting company.
  • Registered Agents’ Role: Registered agents play a pivotal role in the CTA compliance process. They are responsible for facilitating the submission of accurate and timely Beneficial Ownership Information reports on behalf of reporting companies.

Potential Penalties for Non-Compliance With Corporate transparency act

Understanding the potential consequences of failing to comply with the Corporate Transparency Act is vital for reporting companies and registered agents:

  1. Civil Penalties: The CTA authorizes civil penalties for non-compliance, including fines that can accumulate rapidly, reaching up to $500 for each day of violation. This could result in substantial financial liabilities for both businesses and individuals.
  2. Criminal Penalties: In cases of willful non-compliance or knowingly providing false or fraudulent information, individuals may face criminal penalties, including fines of up to $10,000 and imprisonment for up to two years.
  3. Revocation of Business Status: The CTA grants authorities the power to revoke a reporting company’s status, rendering it illegal for reporting companies to conduct business in the United States.

Injunctions: Authorities may seek injunctive relief to compel compliance with the CTA’s reporting requirements, potentially leading to legal actions that disrupt business operations.

Profitable Opportunities for Registered Agents

Every reporting company in the United States must comply with the Corporate Transparency Act, presenting a unique opportunity for registered agents to capitalize on the mandatory reporting requirement. With over 33 million filings expected, registered agents can generate revenue while assisting reporting companies in meeting compliance obligations.

Leveraging FincenFetch Direct for BOI Reporting

FincenFetch Direct, a comprehensive tool for registered agents, simplifies the Beneficial Ownership Information reporting process mandated by the Corporate Transparency Act:

  • Identifying Reporting Companies: FincenFetch Direct simplifies identifying which client companies fall under the CTA’s jurisdiction, encompassing limited liability companies (LLCs), corporations, and similar business structures.
  • Automated Data Collection: Registered agents can seamlessly collect Beneficial Ownership Information data from their client reporting companies using FincenFetch Direct. The tool automates data retrieval and helps maintain up-to-date information.
  • BOI Report Generation: FincenFetch Direct facilitates the generation of accurate Beneficial Ownership Information reports that adhere to FinCEN’s requirements. It simplifies data entry and ensures compliance, reducing the risk of errors.
  • Annual Reporting: The platform simplifies the annual Beneficial Ownership Information report filing process, helping reporting companies stay updated on ownership or control changes and maintain accurate records.
  • Record Keeping: FincenFetch Direct offers a secure and organized method for storing BOI reports and related documentation, meeting the requirement for record retention.

With millions of reporting companies seeking compliance, now is the opportune moment for registered agents to seize this rare opportunity and thrive in the world of CTA compliance.

Charles Wismer
Charles Wismer

CEO at FincenFetch helping the U.S.professional services industry support FinCEN's new national security initiative to launch the Corporate Transparency Act. Prior fund manager and Fintech founder.

Charles Wismer
Charles Wismer

CEO at FincenFetch helping the U.S.professional services industry support FinCEN's new national security initiative to launch the Corporate Transparency Act. Prior fund manager and Fintech founder.

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