New Corporate Transparency Act What to do and What NOT to do

Starting January 1, 2024, many businesses must comply with the Corporate Transparency Act (CTA), which mandates reporting key ownership information to the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN). This law is intended to fight money laundering and other illegal activities by collecting details about the people who own or control businesses.

If you own a corporation or LLC, you’ll likely need to report to anyone who owns at least 25% of the company or has significant control over it. You’ll need to provide personal information, including names, addresses, and identification details like driver’s licenses or passports. Existing businesses must file by December 31, 2024, and companies newly formed in 2025 have shorter deadlines based on their formation date.
However, this new requirement has opened the door for scammers and identity thieves seeking personal information. Be cautious before providing sensitive details. Scammers may pose as government officials or legitimate companies, sending forms or creating fake websites to collect your information.

Important: Bland does not prepare or file these reports on your behalf as they are a matter of law. We strongly recommend contacting your attorney to handle the filing and ensure it’s done securely.

Failing to comply with the CTA can result in penalties, but falling victim to a scam could be even more damaging. Protect yourself by verifying third-party requests and only submitting information through trusted sources.

Things to Do:

• Consult with your attorney: Before submitting any information, get professional legal advice to ensure your filing is accurate and secure.
• Use official channels: Only submit your beneficial ownership report through FinCEN’s official website or trusted legal professionals.
• Verify requests for information: If you receive a request to provide personal or business details, confirm it’s legitimate by contacting your attorney or FinCEN directly.
• Keep your personal information secure: Ensure sensitive documents, like your driver’s license or passport, are shared only with trusted entities.
• Stay aware of deadlines: Existing businesses must file by December 31, 2024, but new businesses may have shorter timeframes depending on their formation date.

Things to Avoid:

• Don’t respond to unsolicited emails or forms asking for your personal or business information, especially from unfamiliar sources.
• Don’t use third-party services that claim they can handle your reporting unless you’ve verified their legitimacy.
• Don’t share personal details through unsecured websites or forms. Always ensure the website you’re using is secure (look for “https” and a lock symbol).
• Don’t wait until the last minute to gather your information or contact your attorney—start early to avoid mistakes and non-compliance.