Business:
If George Orwell’s novel 1984 made you wonder if Big Brother was here, the Corporate Transparency Act (CTA) (31 USC § 5356) should leave no doubt. Passed in 2021 as part of the National Defense Authorization Act, the law will require that businesses file reports with the U.S. Treasury Department’s Financial Crimes Enforcement Network. The goals include preventing shell corporations and limited liability companies being used for money laundering, cybercrime, fraud, tax evasion, human and drug trafficking, proliferation of weapons of mass destruction, and financing of terrorism. Except for larger businesses, the name, date of birth, current address, and a unique identification number such as a passport or driver’s licenses of each beneficial owner of a business must be provided. Yes, “Mom and Pop” corporations and companies are included. Registration is required for new businesses beginning January 1, 2024, and existing businesses must comply by January 1, 2025. Click here for more information . Violation of the law carries a civil penalty of $500 per day up to $10,000 and possible imprisonment of up to two years. Get ready.
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