Understanding the Corporate Transparency Act and How We Can Assist with UBO Filings

by US Registered Agents

The Corporate Transparency Act (CTA) is a landmark regulation enacted to combat illicit activities like money laundering, terrorist financing, and other forms of financial crime. By increasing transparency in corporate ownership, the CTA aims to make it more difficult for individuals to exploit corporate entities for unlawful purposes. A key element of this law is the requirement for many businesses to file information on their Ultimate Beneficial Owners (UBOs), helping authorities trace the true individuals who own or control companies.

What is the Corporate Transparency Act?

The CTA was signed into law on January 1, 2021, as part of the National Defense Authorization Act. It mandates that most U.S. corporations, limited liability companies (LLCs), and similar entities report detailed information about their UBOs to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury. This information is collected in a non-public database and is available only to law enforcement, regulatory agencies, and financial institutions under certain conditions.

Who Needs to File a UBO Report?

Under the CTA, entities that are required to file reports with FinCEN include:

  • Corporations, LLCs, and other similar entities formed or registered in the U.S.
  • Foreign entities that are registered to do business in the U.S.

Certain entities, such as larger companies with more than 20 full-time employees, operating revenues over $5 million, and an active physical office in the U.S., are exempt from the filing requirement. Additionally, regulated entities like banks, insurance companies, and public companies are typically excluded from this reporting.

What Information Must Be Disclosed?

A UBO is defined as any individual who, directly or indirectly:

  • Owns 25% or more of the entity.
  • Exercises substantial control over the entity.

Entities must provide FinCEN with the following details about each UBO:

  • Full legal name
  • Date of birth
  • Residential address
  • A unique identifying number from an acceptable document, such as a passport or driver’s license

Why the CTA Matters for Your Business

Failing to comply with the Corporate Transparency Act can lead to severe penalties, including fines of up to $500 per day for non-compliance and criminal penalties that may include imprisonment for willful violations. This makes it essential for businesses to understand their filing obligations and ensure accurate and timely submissions to avoid any legal repercussions.

How We Can Help: A Trusted Partner for CTA Filings

At US Registered Agents, Inc (USRA), we are a trusted partner for global entity management and compliance solutions, including the handling of UBO filings under the CTA. Here’s why businesses should turn to us:

  1. Expertise in Corporate Compliance: With years of experience in corporate filings and compliance services, we are well-versed in the intricacies of the Corporate Transparency Act and can ensure your UBO information is filed accurately and on time.

  2. Streamlined Reporting Process: Our team handles the entire process for you, from gathering the required information to submitting it to FinCEN, so you can focus on running your business.

  3. Compliance Monitoring: We offer ongoing support to ensure that your business remains compliant with the latest regulations, including updates to UBO filings if ownership or control changes.

  4. Confidentiality and Security: We prioritize the privacy and security of your sensitive business information, ensuring that your UBO data is handled with the utmost care.

  5. Global Reach: With our extensive global network, we are equipped to manage filings not just in the U.S., but for multinational entities that need to remain compliant across borders.

The Corporate Transparency Act has introduced new compliance requirements for many businesses in the U.S., and understanding these obligations is essential for staying on the right side of the law. By partnering with USRA, you gain access to a trusted team of experts who will handle your UBO filings with precision and efficiency, allowing you to focus on what matters most—growing your business. Reach out to us today to learn how we can assist with your initial and ongoing compliance needs.

To proceed with your initial filing, please visit our FinCen BOI filing service

For any questions, please Contact Us and an account representative will be happy to assist you. 

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