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Penalties for Non-Compliance with the Corporate Transparency Act

Penalties for Non-Compliance with the Corporate Transparency Act

In an era of heightened emphasis on corporate transparency and accountability, legislation like the Corporate Transparency Act (CTA) plays a pivotal role in ensuring that businesses disclose accurate and up-to-date information about their ownership structure.

The CTA, enacted to combat money laundering, terrorist financing, and other financial crimes, imposes significant penalties for non-compliance.

Let’s review the consequences of failing to comply with the Corporate Transparency Act, covering scenarios such as forgetting to file, filing incorrect information accidentally, filing incorrect information intentionally, and not filing at all.

Beneficial Ownership Information Deadline Extended for New Companies

Beneficial Ownership Information Deadline Extended for New Companies

In a significant development for financial reporting, the Financial Crimes Enforcement Network (FinCEN) has announced a crucial deadline extension for reporting companies. This update allows reporting companies created or registered in 2024 an additional 90 calendar days from the time they receive their documents from the Secretary of State (or other public notice of creation) to file their initial Beneficial Ownership Information (BOI) reports with FinCEN.
What You Need to Know About Company Applicants

What You Need to Know About Company Applicants

With the upcoming regulatory changes bought forth by the enactment of the Corporate Transparency Act, companies established on or after January 1, 2024 will be required to submit Beneficial Ownership Information (BOI) to FinCEN, a bureau of the U.S. Department of Treasury. 

Newly formed entities will be required to submit company applicant details with their BOI reports. One company applicant is required but two may be listed. 

All About Beneficial Ownership Information

All About Beneficial Ownership Information

The upcoming implementation of the Corporate Transparency Act mandate the reporting of beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN), a division of the U.S. Department of Treasury. But what is beneficial ownership and what specific information will be required to be reported? Let's take a look at the details.
The Corporate Transparency Act: An Introduction

The Corporate Transparency Act: An Introduction

In 2021, the U.S. Congress passed the Corporate Transparency Act (CTA) as part of the broader William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021. This legislative action resulted in significant changes to the regulations concerning financial integrity and will require action by the majority of LLCs and Corporations.
Lost Proof of Existence? Steps to Recover Your Company's Identity in Delaware

Lost Proof of Existence? Steps to Recover Your Company's Identity in Delaware

Losing proof that your company exists in Delaware can be a stressful situation. This critical documentation is essential for establishing your business's legal existence and is required for many business transactions. However, accidents happen, and important papers can be misplaced or destroyed.

If you find yourself unable to locate any proof that your Delaware company exists, don't panic. There are steps you can take to recover your company's identity and ensure its continuity in Delaware.

Cash Method of Accounting vs. Accrual Method

Cash Method of Accounting vs. Accrual Method

Accounting is an essential part of any business, as it helps to keep track of finances and ensure that a business is profitable. Two of the most common methods of accounting are the cash method and the accrual method. These are sometimes called cash basis accounting or accrual basis accounting. While both methods have their benefits and drawbacks, it's important to understand the differences between them in order to choose the best method for your business. Additionally, the type of entity that you have can dictate which method of accounting you are allowed to use.
Holiday Hours

Holiday Hours

In anticipation of the upcoming holidays, we'd like to take a moment to share our holiday hours with you. 

On Friday, December 23rd, we will be closing at 2pm EST.

We will be closed on Monday, December 26th in observance of Christmas Day and Monday, January 2nd in observance of New Year's Day. 

All About Public Benefit LLCs

All About Public Benefit LLCs

With the rise of public consciousness regarding sustainability and corporate responsibility, more business owners are looking for ways to further their mission and business with an eye for the future. The state of Delaware has long been a leader in corporate governance so it’s no surprise that they’ve adapted to the times by adding an entity type to meet the needs of the modern business owner.

S-Corp vs. LLC - Which is Right for Your Business?

S-Corp vs. LLC - Which is Right for Your Business?

New business owners often struggle to determine if forming an LLC or incorporating is the right option for them.

LLCs and S-Corps are commonly cited options, particularly for solopreneurs. But while they have some overlapping benefits (like pass through taxation), they have several notable differences. 

What to Do After You Start Your LLC

What to Do After You Start Your LLC

This is part five of our series, Start an LLC with Me. So far, we’ve started a Delaware LLC, gotten an EIN number, opened a business bank account, and gotten a business license.

For many business owners, all the official parts of the setup process are complete! These days it’s common to have a website and social media accounts for a business before it’s official. You may have already set up a few of these things (my partner and I had before we officially started our LLC).

Let’s look at some of the most important unofficial parts of setting up your business.

Important Notice: Delaware LLC Franchise Taxes Due June 1st

Important Notice: Delaware LLC Franchise Taxes Due June 1st

As a reminder, the 2021 Delaware LLC Franchise Tax due date is approaching.

To avoid penalty and interest, the tax must be paid by June 1, 2022.

Franchise taxes are assessed annually on every LLC entity registered in Delaware, regardless of level of business activity. Franchise tax for LLCs is a flat rate of $300 that must be paid by June 1st every year. You can learn more about why it's called a franchise tax here.