All About the Corporate Transparency Act and Your Clients

Apr 19, 2024
Laws & Compliance

Staying current on legislation that may impact your clients is essential to remaining in compliance and avoiding stiff penalties. One piece of legislation that affects nearly all businesses under $5 million in gross revenue is the Corporate Transparency Act.

If your clients have revenues under that threshold and fewer than full-time 20 employees, new requirements may be imposed. Keep reading to find out how to help them stay compliant.

The Corporate Transparency Act went into effect on January 1, 2024, aiming to curb illicit financial dealings in business. All companies that meet certain criteria are required to file a Beneficial Ownership Information (BOI) Report to the Financial Crimes Enforcement Network (FinCEN), a division of the Department of Treasury.

Protecting Your Clients

Failing to comply with this regulation could cause your clients to face stiff fines. Our partner, The Compliance Center, is working with small businesses that may be impacted by the Corporate Transparency Act. If your clients are coming to you with questions, or if you want to provide accurate information around this issue, we’ve provided additional information around the law here.

In summary, if your client has fewer than 20 employees with revenues of under $5M, they may need to submit a report. Connect with our friends at the Compliance Center for additional support and resources for your clients.

Allie Blackham

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