Is the Corporate Transparency Act a Scam or Legit? 

With new regulations and compliance requirements popping up seemingly every year, it's no wonder many small business owners are asking whether the Corporate Transparency Act (CTA) is just another scam or if it's something they need to take seriously. If you're one of those asking this question, let's clear the air—the CTA is 100% legit, and your time to comply is running out. Deadline is now ON HOLD. Voluntary submissions only.

Let's break it down for you: what is the CTA, why does it exist, what happens if you don't comply, and more importantly, how can you get it done without the stress?

What Is the Corporate Transparency Act?

The Corporate Transparency Act (CTA) is a federal law passed in 2021 that requires most small businesses to file a new report disclosing information about their beneficial owners—the people who own or control the company. The law aims to stop illicit activities like money laundering, terrorism financing, and other crimes that thrive on anonymous shell companies.

If you own or manage a small business, this applies to you. But don't panic—there's still time to file the required report, but the window is closing fast.

Why Is This Happening Now?

The CTA is enforced by FinCEN (Financial Crimes Enforcement Network), which is part of the U.S. Department of the Treasury. FinCEN is responsible for safeguarding the U.S. financial system from illegal activities, and they believe that greater transparency in business ownership will make it much harder for bad actors to hide behind anonymous companies.

Is the Corporate Transparency Act a Scam?

Let's be clear—the CTA is absolutely not a scam. This is a real, legal requirement that applies to most businesses formed in the U.S. If you've seen rumors or misinformation suggesting otherwise, it's important to understand that these are simply myths.

This is a new federal requirement, and it's easy to see why it might seem like a nuisance or even suspicious. But failing to comply could lead to serious consequences for your business.   

What Happens If You Don't File?

Failing to file your Beneficial Ownership Information (BOI) report with FinCEN could lead to severe penalties, including:

• Fines of up to $500 per day for each day your report is late
• Criminal penalties, which could include up to two years in prison

These are hefty consequences for a seemingly simple task, but they're real and avoidable.

How Do I File? The 4 Steps You Need to Take

1. Determine if your business needs to file – Almost all small businesses, except for a few exemptions, are required to submit a BOI report. Check if your business qualifies for an exemption.
2. Identify your beneficial owners – Gather information on anyone who owns 25% or more of your business or exercises significant control over the company.
3. Submit your report to FinCEN – This is done electronically, but if the process seems complicated, keep reading for an easier solution.
4. Stay compliant – You'll need to update your BOI report if there are any changes to your ownership or control structure.

Don't Want to Handle This Yourself? EVN Law Can Help

This is where EVN Law comes in. Filing your BOI report may seem simple, but navigating the requirements and ensuring everything is done correctly can be time-consuming and frustrating. EVN Law makes the process simple and affordable, so you can focus on running your business, not paperwork. Have questions? Send us an email ( [email protected] ) and we will be happy to help answer your questions and concerns.

Here's why working with a law firm is beneficial:

• Accuracy & Compliance – With a team of experts, EVN Law ensures your report is filed correctly and on time, helping you avoid hefty fines.
• Peace of Mind – Should any issues or complications arise, having a law firm on your side offers protection and support.
• Affordability – We understand that small business owners need solutions that won't break the bank. That's why EVN Law offers a streamlined, cost-effective service for filing your BOI report.

Time Is Running Out – Don't Wait

The deadline to file your report is fast approaching. Don't wait until the last minute, and don't risk non-compliance. If you have any doubts or questions, reach out to EVN Law today. Let us take the burden off your shoulders so you can get back to what you do best—running your business.   Shoot us a message and let's get yours filed today!

Click to take the Quiz if you are unsure whether your business is exempt or not