The Corporate Transparency Act was passed in 2021 to combat illicit activities, most notably money laundering, financing for terrorism, and tax fraud. That law requires over 32 million small businesses (Corporations, LLC, Partnerships, etc.) to file a Beneficial Ownership Report (BOI), disclosing all owners with a 25% or more stake.

With record budget deficits and national debt, enforcement of current laws to raise revenue is becoming a top priority in Washington. While some (including a federal district court in Alabama) claim that this law is a governmental overreach, we believe these reporting requirements will be upheld since this legislation is generally aimed at the public good. Make sure to file your report before year end to avoid penalties of up to $591 per day, or a maximum of $10,000, and a potential criminal sentence of up to two years.