Corporate Transparency Act

Effective January 1, 2025, the Federal Corporate Transparency Act requires ALL businesses to file a report with the U.S. Department of the Treasury Financial Crimes Enforcement Network (FinCEN). Almost all business are required to file a Beneficial Ownership Information (BOI) report to identify who controls and owns the Company.

The Corporate Transparency Act (CTA) was enacted on January 1, 2021 to increase transparency and combat money laundering, fraud, foreign interference and other illicit activities. Enforcement was delayed due to a perceived lack of awareness, changes in deadlines, and legal challenges.  FinCEN has made it clear that it will be enforced in 2025.

There are certain exceptions to filing for very large, heavily regulated industries (publicly traded companies, banks, insurance companies, etc.), but most small and medium size companies, including family businesses and single-purpose companies (e.g. a company set up to own real estate), are subject to the reporting requirements.  No business should assume that it is exempt.

The penalties for non-compliance are steep – $500 per day that the report is late, up to $10,000, and possible imprisonment for up to two years.

In addition to the CTA, the Commonwealth of Pennsylvania will begin to require Annual Reports from all businesses registered in Pennsylvania beginning in 2025.

Attorney Tim Maloney and Attorney Sam DeStafano from Maloney Law, P.C. will provide attendees with additional information on the Corporate Transparency Compliance.