5 Small Business Misconceptions About BOI Reporting Under the Corporate Transparency Act

A major reporting deadline is on the horizon for many small business owners. Wolter Kluwer BizFilings recently conducted a survey to see how small business owners were faring in terms of the Corporate Transparency Act (CTA) and its reporting requirements. The CTA mandates that qualifying entities (such as LLCs and corporations) submit information on the company and its beneficial owners to FinCEN (Financial Crimes Enforcement Network). FinCEN is a bureau of the U.S. Department of the Treasury tasked with safeguarding the U.S. financial system from criminal activities.

It is estimated that over 32 million small businesses will need to file an initial beneficial ownership information (BOI) report with FinCEN by January 1, 2025.

The survey discovered that while some business owners had filed or were planning to file an initial BOI report for their LLC or corporation, a significant number of small businesses were in danger of noncompliance with the filing requirements due to misconceptions about the CTA’s qualifying criteria.  Read more.

Watch for details on a virtual presentation from Wolters Kluwer on Beneficial Ownership Reporting For Your Small Business Customers which features a tool to help your customers and create a revenue stream for your bank.