By Ken Fisher, President and CEO, and Matt Mika, AmericanHort

Recent legislation has been enacted that could have implications for your business. Specifically, the Corporate Transparency Act, which came into effect on January 1, 2024, may affect you. This legislation requires corporations, LLCs, limited partnerships, and entities created by a filing with a Secretary of State in any state to file with the Financial Crimes Enforcement Network (FinCEN).

The CTA is a measure to prevent tax fraud, money laundering, and financial terrorism. Compliance is not optional. Penalties for non-compliance can include civil penalties of up to $500 per day of violation and criminal penalties of up to $10,000 in fines and/or imprisonment for up to two years. We encourage AmericanHort members to review the CTA background document for more information and contact their financial or legal counsel for guidance.

The information provided by AmericanHort is for general understanding and does not, and is not intended to, constitute legal or accounting advice. Congress is proposing legislation to extend the deadline for companies to report ownership information to FinCEN.