Navigating the scope and breadth of changes reflected in new “beneficial ownership” rules that take effect in the US this January 2024 has led to Wolters Kluwer publishing a “Countdown to Compliance” guide, which will help educate and provide clarity for reporting companies. Wolters Kluwer officials note that the guide focuses on the most significant requirements the new law will impose on US businesses subject to the new reporting obligations.
The Corporate Transparency Act (CTA) was enacted by Congress on January 1, 2021 and requires reporting companies to file a report with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN). The final reporting rule was issued by FinCEN in 2022 and will require companies to collect, document and monitor previously unreported data on a company’s primary owners via completion of a Beneficial Ownership Information (BOI) report. FinCEN estimates that the rule will impact approximately 32.6 million reporting companies in 2024 alone, and 5.5 million new reporting companies that are formed and registered every year going forward.
According to a Wolters Kluwer press release, it is essential that every person who owns or manages a limited liability company (LLC) needs to be aware of the new reporting requirement, first to determine if their company is subject to BOI reporting and, if so, to begin preparing to comply.
“Beneficial Ownership represents the most sweeping regulatory change to impact small businesses in this country since the Depression era of the 1930s,” notes George May, Vice President and Segment Leader, Small Business, for CT Corp, a Wolters Kluwer business. “And the stakes are high, given the consequences of non-compliance, including hefty fines and, potentially, incarceration. It is critical that companies understand their reporting obligations under the new rule and begin preparing for compliance.”
The “Countdown to Compliance” guide addresses frequently asked questions, from definitions on the eligibility of “beneficial owners” and “reporting companies” to details on the filing process, costs, and other considerations. Special sections pertaining to law firms and accounting firms provide insights on CTA compliance, whether a firm is subject to the rule itself or in the capacity of guiding clients.
For more information on navigating the new beneficial ownership rule, visit the CTA Resources page.
For more than 130 years, Wolters Kluwer CT Corporation has been the leading provider of registered agent services, incorporation services, and legal entity compliance. It is part of Wolters Kluwer’s Financial & Corporate Compliance (FCC) division and has a global reach into over 150 countries. More than 75 percent of Fortune 500 companies, 95 percent of AmLaw 100 law firms, and 350,000 small businesses trust CT Corporation to handle their compliance needs with the help of innovative solutions such as UCC Hub, an end-to-end due diligence workflow solution for corporate transactions.Wolters Kluwer Compliance Solutions, also part of Wolters Kluwer FCC, is a market leader and trusted provider of risk management and regulatory compliance solutions and services to U.S. banks, credit unions, insurers and securities firms.