New small business regulations: What owners must do to avoid a $500 per day penalty

Tuesday April 12, 2022 Published in
A Business Owner’s Guide to the Corporate Transparency Act 2022 New Regulations and Recommendations (1)

The Corporate Transparency Act (CTA) is a historic new law impacting millions of America’s existing small corporations and LLCs, as well as newly formed entities. This new law requires the disclosure and reporting of business ownership information directly to the Financial Crimes Enforcement Network (FinCEN), a division of the U.S. Department of Treasury.

This is the first time in history that the federal government will create and maintain a database of private company ownership for law enforcement purposes. The purpose is to enhance national security by preventing the use of corporations and LLCs for criminal activities, such as money laundering.

The period for public comment regarding the CTA expired on February 7, 2022. FinCEN is expected to finalize the regulations and begin enforcement of the CTA’s regulations at some point this year. Based on the criteria, more than 90 percent of companies in the United States must share their ownership information with FinCEN to comply and avoid stiff penalties.

Willful violations are subject to substantial fines ($500/day) and criminal penalties (up to $10,000), including prison time. We urge you not to wait to comply with this new law.

For an update and summary on the CTA and its implications, including frequently asked questions, download our most recent brief here: A Business Owner’s Guide to the Corporate Transparency Act.

Download Now


Wegman Hessler specializes in business law for business leaders, applying legal discipline to solve business problems to help business owners run smarter. For more than 50 years, this Cleveland business law firm provides full-service strategic legal counsel for closely held businesses. Learn more at www.wegmanlaw.com.

Categories

Popular Posts

Tags

Related Stories

AstraZeneca found liable for wrongful termination of worker in COVID-19 vaccine exemption claim in Federal Court


Cleveland – On November 26, 2024, a U.S. District Judge Pamela A. Barker of the Northern District of Ohio ruled that AstraZeneca discriminated against former employee Jonathan Bobnar when it…

Read More
Wegman Hessler Valore is helping a thousand families in need have a happier Thanksgiving this year, taking an active role in supporting and expanding the generous work of one of its business law clients.

Wegman Hessler Valore helping to provide 1,000 Thanksgiving dinners for families in need


Cleveland – Wegman Hessler Valore is helping families in need this Thanksgiving, taking an active role in supporting the generous work of one of its business law clients. When Wegman…

Read More

Wegman Hessler Valore receives “Best Law Firm” for Cleveland honors, four attorneys recognized as “Best Lawyers”


Wegman Hessler Valore, a leading business law firm serving organizations and leaders throughout Northeast Ohio, has again been recognized with “Best Law Firm” honors in Commercial Litigation, Tier One by…

Read More