In this video, Amy covers a crucial update about The Corporate Transparency Act—a must-know federal regulation for almost all U.S. businesses.
Learn about the Act, including what it is, what registration is required, and the impact it holds for you and your business in 2024 and beyond.
If you’re a business owner, no matter the size, this is a must-watch!
Watch the video here!
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Amy Roepke:
0:00 Hi, I’ve got a news bulletin coming your way. It’s a super important. So stick around for the next few minutes.
0:07 I’m going to do my best not to freak you out so if you own a business in the United States or you own a foreign business that’s registered to do business in the United States this applies to you.
0:19 Okay. The Corporate Transparency Act. Have you heard of it? If you haven’t heard of it, I encourage you to look it up on your favorite browser.
0:32 This is a federal regulation that is mandatory for every business and the United States unless you’re exempt. And so the regulation says that you must register with FinSend, which is the financial incentive crimes network, something like that.
0:52 You can look it up. And you must register your business. You must register your beneficial owners of your business. There are a lot of definitions of who a beneficial owner is and all those things.
1:09 We’re not going to worry about that right now. The thing that I want you to know right now is that the Corporate Transparency Act is in effect starting January 1st, which is very soon January 1st, 2024.
1:22 And your business, if it was registered with the Secretary of State prior to January 1st then you do have the entire year to comply with these regulations.
1:35 However, if you register your business after January 1st or you engage in something like a merger where you have to register forms with the state, then you have 30 days to comply.
1:47 So, the compliance is, again, registering with the web portal that’s there setting up that isn’t even active yet, it will be active, January 1st, supposedly, and providing personal identifying information, which is Jarvis-Lessons or Passport, or something of that effect to the federal database.
2:12 The database itself is going to be held by FinSend and accessible to law enforcement. Not accessible to the general public, as far as I know.
2:30 So typically, when big new laws come into effect, their regulation is of larger businesses. And so if you have a smaller business, you might be wondering, well, I don’t have any employees.
2:44 Or I have less than five employees or less than 10 or something. Does this apply to me? The answer is absolutely.
2:49 In fact, the law was made for businesses of your size. So the businesses that are exempt from filing are businesses that are publicly traded or banks or are already regulated and registered in some other way.
3:06 And they also have an exemption for businesses that have over 20 employees and make, I think it’s over 5 million in revenue on their last tax return.
3:16 So if you started your business this year and you have over 20 employees and you have 5 million revenue you still have to register because you haven’t found the tax return yet.
3:24 Otherwise those larger, medium to larger sizes, size businesses are exempt from this law and it’s the small business that is going to have to comply.
3:36 So what does that mean for you. It means talk to your advisor, talk to your accountant, talk to your attorney.
3:45 Accountants, as far as I know, will not be helping you file paperwork because what I’m hearing is that their mouth practice will not cover the filing and so it’s going to fall in your layers.
4:00 So definitely talk to your business attorney, find out what they’re doing to help their customers comply and I can tell you that a lot of the business attorneys out there are still are wondering themselves how they’re going to help their customers comply because we haven’t seen the forums yet and we
4:20 I haven’t seen we know a little bit about the process of window fair amount about the process that will be undergone and how to guide clients through that but there’s a lot that we still don’t know the website, the ThinSend website, has an FAQ and they’re providing information there.
4:40 They’re still rising and adding questions and answers as we go. So don’t panic, like I said, do my best not to freak out, but I just wanted to pop in, share this information real quick and make sure that you know what’s coming for you starting January 1st.
5:01 Okay, feel free to ask me any questions that you have. I’m here to help.
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