What Maine Businesses Need to Know About the Corporate Transparency Act

The business landscape is changing, and it’s crucial for Maine businesses to stay informed about new regulations that could affect them. One such regulation is the Corporate Transparency Act (CTA), which became law in January 2021 and is set to have a significant impact on businesses in the state, especially in the coming years.

What is the Corporate Transparency Act?

Photo looking directly down at table of business professionals working on laptops and paper. Business documents are scattered on the table. The CTA is a federal law aimed at increasing transparency in corporate ownership to prevent illicit activities like money laundering and tax evasion. It requires most business entities to report information about their beneficial owners to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN). Beneficial owners are individuals who own or control a significant portion of the company.

Key Points for Maine Businesses

  1. Reporting Deadlines:
  • For companies already in existence or those to be formed before the end of 2023, the deadline for filing Beneficial Ownership Information (BOI) reports is January 1, 2025.
  • Companies formed after 2023, with few exceptions, have immediate reporting obligations. Their initial BOI Report is due just 30 days after the date of incorporation or formation, measured by the date of filing with the Secretary of State or a similar office.
  1. Who Needs to Report
  • Corporations, Limited Liability Companies (LLCs), and similar entities need to report their beneficial owners.
  • Publicly traded companies and some regulated entities are exempt.
  1. Group of 5 business leaders meeting in a board room. An older woman stands at the front of the group, while the rest of the group sits at the table. What to Report
  • You’ll need to report names, addresses, dates of birth, and identification numbers of beneficial owners.
  • Copies of identification documents are also required (i.e. driver’s license, passport, etc.)

How Does It Affect Maine Businesses?

Maine businesses should be aware of the CTA’s reporting requirements, as non-compliance can lead to significant penalties. The CTA aims to increase transparency in the business world, making it easier to determine the person or people benefitting from business activities. It’s a step toward a more accountable and secure business environment.

What to Do Next

Business leader meets with an attorney to discuss business practices. Man is smiling. If your business is subject to the CTA’s reporting requirements, it’s essential to start gathering the necessary information about your beneficial owners. Consulting legal counsel or professionals experienced in compliance matters can be valuable in ensuring your business meets its obligations.

The Corporate Transparency Act is set to bring significant changes to how businesses report their ownership information. Maine businesses should be proactive in understanding and complying with this federal law to avoid any potential issues down the road. Stay informed, stay compliant, and ensure your business is on the right side of the law.

For specific guidance tailored to your business, reach out to one of our experienced attorneys who can provide you with the most up-to-date information and assistance.