By Michael J. “Mick” McGirr, Esq. | Phocus Law
Hi All! Back in February, I authored an article here discussing the Corporate Transparency Act and what it means. In this article, which I promise will be short and sweet, I want to provide a quick update so that you know the timelines for your compliance obligation. If you want a more thorough rundown of the ins and outs of the CTA, refer back to the February 2024 article.
Despite the excitement generated by the Alabama federal court ruling, where certain elements of the CTA were deemed to be unconstitutional, there was no meaningful impact on your obligation to comply. So, it’s important for you all to know when you need to comply.
If Your Entity was Formed Prior on or before December 31, 2023:
- Your CTA compliance is required on or before December 31, 2024.
If Your Entity was Formed on January 1, 2024, or Thereafter, Any Time up until December 31, 2024:
- Your CTA compliance is required within 90 days of the date your entity was formed. There are some folks confused by whether this is within 90 days of formation, or within 90 days of receiving notice of formation. To be safe, comply within 90 days of actual formation.
For Folks who will be Forming Entities in 2025:
- Your CTA compliance will be required within 30 days of formation.
For Changes to Beneficial Ownership of Entities:
- You will need to provide updated CTA compliance reporting within 30 days of such changes.
The Alabama federal court decision may be a harbinger of future rulings on the constitutionality of the CTA but don’t rely on it. If your compliance deadline is approaching, comply to avoid those ugly penalties that can be assessed to those who fail to comply. If you have questions or need help navigating compliance, reach out to your trusted business and real estate law firm in Arizona – Phocus Law. We can be reached by email at Mick@PhocusCompanies.com or by phone at (602) 457-2191.