The Who, What, and When of the Corporate Transparency Act

What new reporting is the U.S. Government now requiring?

The Corporate Transparency Act (CTA), effective January 1, 2024, is U.S. government-instituted legislation that requires many U.S. entities to report detailed information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN). FinCEN is a bureau of the U.S. Department of Treasury on a non-public, secure, cloud-based, national registry for use by law enforcement, intelligence, and national security agencies to protect U.S. economic and national security. This is a result of increased efforts by the U.S. government to force transparency and combat financial crimes.

This is something that many clients may not be aware of, which is why M3 Family Office has been researching this since January to provide clients with a solution. Following these new U.S. government-imposed regulations will be vital to stay compliant.

Reporting: What is Required and Who Will Fulfill the Requirements?

The companies that the U.S. Government requires to report are corporations, limited liability companies (LLCs), and other entities created by a filing with the secretary of state.

Per FinCEN, there are currently 23 types of entities that are exempt from the reporting requirements. We suggest reaching out to legal counsel to confirm whether your companies are required to report.

With that being said, many of M3’s clients use LLCs in their estate plans which fall under this new legislation and will need to be reported by 12/31/24.


 M3 Family Office is here to help guide you through the process and coordinate filing and understanding. We have established a method of filing online or through CT Corp. The BOI (beneficial ownership information) reporting is a centerpiece of this act since it allows the government to see through layers of an LLC and its ultimate beneficiaries. The BOI reporting is not an annual commitment. Clients will only need to file a report for their entity/company once unless their company needs to update or correct information.

Beneficial Ownership Information (BOI)


The BOI refers to the individuals who directly or indirectly own/control a company and, as a result, will need to report to FinCEN. By definition, a beneficial owner is an individual or trust that owns more than 25% or exercises substantial control of a reporting company.

Per government request, it is important to note that the Trustees of any Trust owning more than a 25% beneficial interest in any LLC will also need to file.

When preparing the BOI report, beneficial owners will need to provide their legal name, physical residence address, date of birth, picture ID, and a unique identifying number (such as a license or passport). Alternatively, an easier way would be to obtain a FinCEN ID, which can be obtained here. M3 Family Office is happy to assist with this report.

Reporting Timelines and Penalties

All reporting companies need to follow the following timeline:

·      A reporting company created or registered to do business before January 1, 2024, will need to file its BOI report by January 1, 2025

·      A reporting company created or registered to do business in 2024 will need to file its BOI report within 90 calendar days of the effective registration date

·      A reporting company created or registered on or after January 1, 2025, will need to file its BOI report within 30 calendar days of the effective registration date



As the law came into effect in 2024, there are a few different tiers of filing deadlines:


Failure to comply with BOI filing requirements and the timeline above may be subject to the following:

·      $500 for each day that the violation continues.

·      A criminal fine of up to $10,000.

·      Up to two years in prison.



Constitutional Challenges to the CTA

It is worth noting that there have been some challenges since this law came out as to whether it is constitutional. As of March 1, 2024, there has been a ruling by a federal district court in Alabama that the CTA is unconstitutional, however, the results of this ruling are limited to the plaintiffs in the suit (the National Small Business Association or its members). Thus, other entities not part of that group are still subject to complying with the CTA, though this is likely to continue to evolve through the remainder of 2024.

For the time being, business entities must still comply with their obligations under the CTA, meaning that newly formed entities must still meet the 90-day filing deadline. Entities formed prior to 2024 have until the end of this year to file their BOI reports. These entities should assess whether they are required to file a BOI report and should collect the necessary information from their beneficial owners, but they may want to wait to file a BOI report until later this year when there will hopefully be more certainty around the CTA.



At M3 Family Office, our goal is to support our clients and provide peace of mind. We have created a system where we can assist you with the reporting requirements. We will be following this new requirement closely for any potential changes, which we will make you aware of.

This new requirement mostly impacts UHNW individuals and their complex estate plans. Since LLCs are commonly used in planning, M3 Family Office urges you to reach out to our team to ensure you are aware of the rules and stay compliant.