A Step-by-Step Guide for Reporting Companies Filing a BOI Report under the Corporate Transparency Act (CTA)
With the Corporate Transparency Act deadline approaching quickly, on January 1, 2024, now is the time for reporting companies to create an account with TurboCTA for Beneficial Ownership Information (BOI) Report filings.
What is the Corporate Transparency Act?
The Corporate Transparency Act (CTA) was enacted to bring greater transparency to business ownership and control in the United States.
It aims to prevent criminals and corrupt officials from using fake companies for illegal things like money laundering.
Most U.S. companies, known as reporting companies, are required to share their Beneficial Ownership Information (BOI) with the Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) under this law.
Who Needs to Report Under the Corporate Transparency Act?
Not all businesses have to report under the CTA. Those that do are known as ‘reporting companies,’ which include U.S.-based businesses and some foreign companies doing business in the U.S.
Certain businesses may qualify for exemptions, so checking if your business is eligible is essential.
Why Is Reporting Beneficial Ownership Information Important?
Reporting under the CTA is required to enhance transparency, curb illegal financial activities, and strengthen national security efforts.
Failure to meet the Corporate Transparency Act deadline carries significant consequences, including civil penalties that can accumulate to $500 per day for each ongoing violation.
Additionally, willfully providing false information under the CTA can result in fines of up to $10,000, imprisonment for a maximum of two years, or a combination of both. To avoid these risks, following the correct filing process is crucial.
How to File My Beneficial Ownership Information Report?
These steps ensure reporting companies can easily comply with the new Corporate Transparency Act regulations and provide clarity about their ownership structure. Let’s get started!
- Account Creation: The first step in your Beneficial Ownership Information report filing journey is to create an account on TurboCTA. This account will serve as your secure portal for all CTA-related filing. During this step, you’ll need to provide basic information about your business with TurboCTA’s user-friendly interface.
- Determine Your Reporting Status: Once your account is set up, TurboCTA’s Exemption Checking tool will assist you in determining your reporting status under the Corporate Transparency Act. It will guide you through a series of questions to assess whether your company is subject to CTA reporting requirements (reporting companies) or if it qualifies for any exemptions. This step is crucial in understanding your filing obligations and responsibilities.
- Complete the BOI Report: If TurboCTA determines that your company is a reporting company required to report under the CTA, it will guide you through the Beneficial Ownership Information (BOI) report. TurboCTA’s platform provides step-by-step instructions and fields for entering the necessary data, making the reporting process quick and easy.
- Review, Verify, and Submit: Before submitting your Beneficial Ownership Information report, reviewing all the provided information is vital for accuracy and completeness. TurboCTA will prompt you to verify the data to ensure it aligns with the CTA requirements. Once you’re confident everything is in order, you can submit your BOI report through the platform.
Why file my BOI report with TurboCTA?
TurboCTA offers an organized and secure way to meet your Corporate Transparency Act reporting requirements. Here’s why reporting companies trust TurboCTA:
- Simplicity: TurboCTA’s user-friendly interface simplifies the reporting process, making it accessible to users of all experience levels.
- Exemption Checker Tool: TurboCTA’s Exemption Checker Tool helps you quickly determine if your company qualifies for exemptions, saving time and potential penalties.
- Accuracy: TurboCTA guides you through the process, reducing the risk of costly errors and ensuring that your data aligns with Corporate Transparency Act requirements.
- Security: TurboCTA provides a secure platform for filing and safeguarding your data.