From January 1, companies are obliged to file a tax return due to the Business Transparency Act

SHREVEPORT, La. (KSLA) – Companies will be required to file reports on their beneficial owners as part of the National Defense Authorization Act.

On January 1, 2025, companies will be required to disclose information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN) as part of the Business Transparency Act (CTA), which came into effect in 2021. The CTA was enacted as part of the National Defense Authorization Act to prevent illegal and fraudulent activity.

CTA applies to most existing US and foreign companies registered to do business in the US

Reporting requirements vary depending on when the company was incorporated or registered:

• Before January 1, 2024: Companies must submit their first report before January 1, 2025.
• Registered in 2024: Companies have 90 days to submit their first report.
• After January 1, 2025: Companies have 30 days to submit their first report.

Companies that intentionally violate the CTA’s reporting requirement may face fines of up to $500 per day, with a maximum fine of $10,000.

For more information about the CTA, visit the Louisiana Secretary of State’s website here.

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