Ongoing Filing & Amendment Obligations under the CTA
Filing your Beneficial Ownership Information (BOI) form under the Corporate Transparency Act (CTA) is just the first step in maintaining compliance. After the initial filing, you may need to update or amend your form to reflect changes in your company’s ownership or control structure. FinCEN requires timely updates to ensure the information they have on file remains accurate and useful for combating financial crimes.
When Are Amendments Required?
You are required to amend your CTA BOI form within 30 days of any changes to the information previously reported. This includes updates to:
- Beneficial Owners: If an individual who owns 25% or more of the company or has substantial control (e.g., a senior officer) is replaced, added, or removed.
- Company Details: Changes to the company’s legal name, principal address, or tax identification number
- Exemptions: If your company’s status changes, such as no longer qualifying for an exemption, you must file an updated report.
For example, if a company undergoes a significant ownership transfer where a new individual acquires more than 25% equity, or if a new CEO is appointed, the BOI filing must be amended to include this updated information.
Why Is It Important to File Amendments on Time?
Failure to file amendments within the 30-day window can result in significant penalties. Non-compliance may incur civil penalties of up to $500 per day and, in some cases, criminal penalties, including fines up to $10,000 or imprisonment. Keeping your filings up-to-date is crucial not only to avoid fines but also to ensure you stay on the right side of federal law.
How to File Amendments
Amendments are filed using the same FinCEN system as the initial BOI filing. You will need to log into your secure account, make the necessary changes, and submit the updated form. It’s a simple process, but keeping track of changes and ensuring timely updates can be challenging for busy businesses.
Counsel Club’s secure platform makes it easy to manage your filings and updates. By storing your BOI form in a secure account, you can quickly amend your information as needed, ensuring full compliance with the CTA without the stress.
