Information from last week’s NFIB seminar regarding Beneficial Ownership Rule
This mandate, under the federal Corporate Transparency Act (CTA), demands businesses file personal information with FinCen (Financial Crimes Enforcement Network) by January 1, 2025. The rule requires corporations, LLCs, etc. with 20 or fewer employees with $5 million or less in gross receipts or sales, report their information. This data is then accessible to various agencies and law enforcement without a warrant.
It is important to note is still somewhat unclear who must file as beneficial ownership includes those with “substantial control” over the business. This means some managers and other senior employees will have to file their information too.
NFIB has found in our polling that a great many businesses are unaware of this rule and the reporting requirement. Failure to file could result in criminal penalties of up to 2 years in prison and civil penalties of $500 per day up to $10,000.
NFIB filed a lawsuit against the CTA (NFIB files lawsuit challenging Corporate Transparency Act – Financial Regulation News (financialregnews.com)) and supporting legislation to repeal this rule H.R.8147 – 118th Congress (2023-2024): Repealing Big Brother Overreach Act | Congress.gov | Library of Congress. Last month, NFIB members from across the nation traveled to Washington to meet with their elected officials seeking additional cosponsors for the bill. My members met with Congressman McGovern and Congressman Neal (along with staff from Congressman Auchincloss’ office) bringing it to their attention.
NFIB filed a lawsuit against the CTA (NFIB files lawsuit challenging Corporate Transparency Act – Financial Regulation News (financialregnews.com)) and supporting legislation to repeal this rule H.R.8147 – 118th Congress (2023-2024): Repealing Big Brother Overreach Act | Congress.gov | Library of Congress. Last month, NFIB members from across the nation traveled to Washington to meet with their elected officials seeking additional cosponsors for the bill. My members met with Congressman McGovern and Congressman Neal (along with staff from Congressman Auchincloss’ office) bringing it to their attention.