Part 8

What Should You Do if Your Company is Subject to the CTA Reporting?

Double Check. If in doubt, make sure that you are exempt. The penalties for getting it wrong can be severe. If you decide to double check, make sure your attorney is aware of any deadlines (which will generally be 30 days after the company is formed or becomes exempt).

Ensure that Someone Remains Responsible For CTA Compliance. Someone in your company needs to be responsible for ensuring that CTA compliance is monitored over time. If the CTA changes, or the company’s obligations under the CTA change and it is no longer exempt, appropriate steps must be taken on time. Additionally, third parties may have an obligation to comply with the CTA (for example, subsidiaries) and having someone on your team up to speed on the CTA can ensure that you are in a position to monitor and enforce those requirements.

Adopt or Continue a CTA Compliance Plan. Consider adopting or keeping a CTA compliance plan in place. If the company is close to the large operating company exemption requirements, for example, it’s possible some companies will gain and lose the exemption several times over the course of a relatively short period of time. Keeping a compliance plan in place can be particularly helpful during that time.

File Updated BOI Report. If your company has already filed a BOI report and is now exempt, an updated report must be filed within 30 days after the change that resulted in the exemption. If your company loses the exemption in the future, an updated report must be filed  within 30 days after the change that caused the exemption to be lost.


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