Important Update on Corporate Transparency Act (CTA) Compliance

Please see the important update below regarding the Corporate Transparency Act (CTA) compliance requirements.

Firm Update on CTA Compliance Assistance

After careful consideration, we want to inform you that Daffner Law Firm, LLC will be assisting with CTA compliance filings. As of January 1, 2024, the CTA requires many businesses to file Beneficial Ownership Information (BOI) reports with FinCEN.

If your business is subject to these requirements, you will need to contact the Daffner Law Firm, LLC, file independently or seek other third-party assistance. Clients have been managing compliance in various ways:

• Letting the Daffner Law Firm, LLC assist them with their filing

• Filing themselves via the FinCEN BOI E-Filing Portal

• Engaging their CPA or accountant to handle the filing

• Hiring third-party service providers for assistance

Recommended Resources for CTA Filing

For your convenience, we recommend the following options for CTA compliance:

1. Daffner Law Firm, LLC: https://www.daffnerlawfirm.com/contact

2. Self-filing FinCEN’s BOI E-Filing Portal: https://fincen.gov/boi

3. Third-Party Vendors:

   • Parasec: www.Parasec.com/corporate-services/beneficial-ownership-information/

   • Northwest Registered Agent: www.northwestregisteredagent.com

     
     

While we provide these recommendations, please note that we are not endorsing or guaranteeing these services. We encourage you to evaluate and select a solution that best fits your needs.

Key Filing Deadlines

• Existing entities: File by January 1, 2025

• New entities formed in 2024: File within 90 days of formation

• New entities formed after 2024: File within 30 days of formation

Failure to comply may result in significant civil or criminal penalties. We strongly encourage you to address these requirements promptly.

Important Update (as of December 9, 2024)On December 3, 2024, the Federal District Court for the Eastern District of Texas issued a nationwide preliminary injunction, temporarily halting the enforcement of the CTA and its implementing regulations.

Options to Consider:

• Proactive Filing: File your BOI report now to avoid potential last-minute compliance if the injunction is overturned.

• Wait and See: Monitor developments, as the injunction may become permanent, or the CTA’s implementation could be delayed further.

Corporate Transparency Act (CTA) Self-Filing Guide

Step-by-Step Filing Instructions

Preparation

1. Gather Required Information

   • Full legal name of the company

   • Trade name or DBA (if applicable)

   • Current business address

   • State of formation

   • Tax Identification Number (EIN)

2. Collect Beneficial Owner Details For EACH beneficial owner, you’ll need:

   • Full legal name

   • Date of birth

   • Residential address

   • Identifying document (driver’s license or passport)

   • Unique identifying number from the document

   
   

Filing Process

1. Access FinCEN BOI E-Filing Portal

   • Visit https://boifiling.fincen.gov

   • Create a free FinCEN account

   • Have all documentation prepared before starting

2. Select Filing Type

   • Initial Report

   • Correction to Previous Report

   • Updated Report

3. Company Information Section

   • Enter precise business details

   • Upload supporting documentation

   • Verify all information accuracy

4. Beneficial Owner Information

   • Enter details for each qualifying owner

   • Minimum threshold: 25% ownership or substantial control

   • Attach copies of identifying documents

5. Company Applicant Information

   • Required for entities formed after January 1, 2024

   • Typically the person who filed formation documents

   
   

Important Compliance Notes

• No filing fee required

• Electronic filing only

• Penalties for incorrect or late filing:

  • Civil penalties up to $500/day

  • Potential criminal penalties

• Updates required within 30 days of changes

Who Must File

• Corporations

• Limited Liability Companies (LLCs)

• Similar entities created by filing with a state secretary

• Exceptions include:

  • Publicly traded companies

  • Certain regulated entities

  • Large operating companies with 20+ employees

Recommended Documentation Checklist

• Articles of Organization/Incorporation

• Current EIN documentation

• Ownership certificates

• Identification documents for owners

• Organizational charts (if complex ownership)

Technical Requirements

• Internet connection

• PDF document scanning capability

• Valid government-issued ID

• Access to company formation documents

After Filing

• Save confirmation number

• Keep a copy of submitted report

• Set calendar reminder for future updates

We are here to provide guidance and answer any questions you may have about this update. Please do not hesitate to reach out if you need assistance or additional resources.

Sincerely, Daffner Law Firm, LLC