If you’re a startup or small business worried about complying with the Corporate Transparency Act (CTA), here are a few simple, actionable steps to take right now:
- Check If You Need to File:
Use our Quick Check Tool to see if your business is subject to the CTA’s requirements. Many small businesses, like sole proprietorships or certain exempt entities, may not need to file at all. - Voluntary Filing Is an Option:
Even with the injunction in place, you can voluntarily file your beneficial ownership information (BOI) with FinCEN. For most companies, this is the same information you already provide to the IRS, so there’s minimal risk. Filing now can help you avoid scrambling if the injunction is lifted suddenly. - Understand What You’ll Need:
If you choose to file, gather:
• Your company’s legal name and address.
• Information about beneficial owners (typically anyone owning 25% or more of the company or with significant control).
• Basic personal details for each owner (name, date of birth, address, and a government-issued ID number). - Don’t Panic About Penalties:
The penalties for non-compliance only apply if the filing is mandatory and you fail to submit it. While the injunction is in place, there’s no enforcement—but filing voluntarily ensures you’re covered regardless. - Stay Informed:
Keep an eye on updates about the injunction and any changes to the filing deadline. Council Club will keep you posted on any developments so you can act quickly if needed.
Filing voluntarily is a no-pressure way to stay ahead of potential CTA requirements. It ensures you’re covered and eliminates the risk of last-minute scrambling if the injunction is lifted. Plus, the information FinCEN collects is aimed at combating money laundering, using data most businesses already provide to the IRS.
Take a few minutes to evaluate your filing obligations now, and you’ll be one step ahead no matter what happens with the injunction.
