The Corporate Transparency Act

What is a Beneficial Owner? It is an individual who either directly or indirectly exercises substantial control over the entity OR owns at least 25% of the entity’s ownership interests.

What is Substantial Control? It applies to an individual that meets ANY of the below four criteria:

1. A senior officer
2. The individual appoints or removes certain officers or a majority of directors of the entity
3. An important decisions maker
4. The Individual has any other form of substantial control over the entity

When does the entity have to report the information to FinCEN?

• Companies created before January 1, 2024 will have until January 1, 2025 to file Beneficial Ownership Information (BOI).
• All other companies created after January 1, 2024 and before January 1, 2025 will have 90 calendar days after receiving actual notice that the registration of the entity is effective.
• Entities created after January 1, 2025 will have 30 calendar days to file their BOI reports.
• Any changes to the information provided must be reported within 30 calendar days

What information needs to be reported? Full legal name, Date of birth, current Address, and a number and image from one of the following NON-EXPIRED Documents (US Passport, State Driver’s License, ID document issued by state, local government, tribe, or a Foreign Passport if no other documents exist.)

Where does one report the BOI Information? Access the form by going to the website (https://boiefiling.fincen.gov) and select “File BOIR” What is the penalty of not reporting? The failure to report may result in civil (up to $500 for each day the violation continues) or criminal penalties (up to two years and/or a fine of up to $10,000).

A federal court recently ruled that the CTA is unconstitutional (National Small Business United d/b/a National Small Business Association (NSBA), et al. v. Janet Yellen, et al.) due to the act exceeding the constitution’s limits on congressional power. For now, the court doesn’t prohibit FenCEN from enforcing the CTA against entities that are not in the NSBA. Since the government has yet to respond to the ruling in this case, it is advised that entities continue to file with FenCEN until there is more clarity in order to avoid the hefty penalties associated with the Act.

While we do not file on behalf of our clients with FinCEN, your Bison Wealth advisor is happy to help you answer questions you may have with regard to the process. Let us help you plan, protect, and prosper!

The Corporate Transparency Act PDF

Disclosures | Important Information

Investment Advisory services are provided through Bison Wealth, LLC located at 3550 Lenox Rd NE, Ste 2550 Atlanta, GA 30326 or Bison Advisors, LLC located at 140 Cateechee Trail, Hartwell, GA 30643. Securities offered through Metric Financial, LLC. located at 725 Ponce de Leon Ave. NE Atlanta, GA 30306, member FINRA/SIPC. Bison Wealth, LLC and Metric Financial, LLC are not affiliate entities. More information about Bison Wealth or Bison Advisors and its fees can be found in their respective Form ADV Part 2, which is available upon request by calling 404-841-2224. Bison Wealth and Bison Advisors are independent investment advisers registered under the Investment Advisers Act of 1940, as amended. Registration does not imply a certain level of skill or training.

The statements contained herein are based upon the opinions of Bison Wealth, LLC (“Bison”) and the data available at the time of publication and are subject to change at any time without notice. This communication does not constitute investment advice and is for informational purposes only, is not intended to meet the objectives or suitability requirements of any specific individual or account, and does not provide a guarantee that the investment objective of any model will be met. An investor should assess his/her own investment needs based on his/her own financial circumstances and investment objectives. Neither the information nor any opinions expressed herein should be construed as a solicitation or a recommendation by Bison or its affiliates to buy or sell any securities or investments or hire any specific manager. Bison prepared this Update utilizing information from a variety of sources that it believes to be reliable. It is important to remember that there are risks inherent in any investment and that there is no assurance that any investment, asset class, style or index will provide positive performance over time. Diversification and strategic asset allocation do not guarantee a profit or protect against a loss in a declining markets. Past performance is not a guarantee of future results. All investments are subject to risk, including the loss of principal.

Index definitions: “U.S. Large Cap” represented by the S&P 500 Index. “U.S. Small Cap” represented by the S&P 600 Index. “International” represented by the MSCI Europe, Australasia, Far East (EAFE) Net Return Index. “Emerging” represented by the MSCI Emerging Markets Net Return Index. “U.S. Aggregate” represented by the Bloomberg U.S. Aggregate Bond Index. “Treasuries” represented by the Bloomberg U.S. Treasury Bond Index. “Short Term Bond” represented by the Bloomberg 1-5 year gov/credit Index. “U.S. High Yield” represented by the Bloomberg U.S. Corporate High Yield Index. “Real Estate” represented by the Dow Jones REIT Index. “Gold” represented by the LBMA Gold Price Index. “Bitcoin” represented by the Bitcoin Galaxy Index