Once outside “normal” banking channels, the financial choices presented to businesses are awesomely complex and varied. Should a business finance with debt, equity, debt with an equity “sweetener” or convertible debt? Is the financing available through institutions, private investors or through a public securities offering? Will investment banking or brokerage assistance be available? If equity is used, what percentage of the company should be offered? Should the stock be common or preferred and, if the latter, how should the preferred be structured? What dividend policy is appropriate?
For more information concerning our debt & equity financing services, please contact us at 717-215-9703 or use the form on our Contact page.
Hedger & Hedger, 115 Country Club Drive, Hertford, NC 27944
717-215-9703
In 2021 Congress enacted the Corporate Transparency Act (CTA) which became effective on January 1, 2024. The CTA is intended to protect national security by combatting the use of “shell” companies to commit money laundering, tax evasion, fraud, corruption, terrorism and other illegal activities.
To this end, the CTA requires that most small businesses formed by filing organizational documents with government agencies (“reporting companies”) file Beneficial Ownership Information Reports (BOIRs) with the Financial Crimes Enforcement Network (FinCEN).
Reporting companies may include business corporations, professional corporations (PCs), limited liability companies (LLCs), limited partnerships (LPs), limited liability partnerships (LLPs) and other entities formed pursuant to filings with a secretary of state or similar office. Sole proprietorships and general partnerships are among the entities exempt from compliance with the CTA.
Reporting companies formed prior to 2024 have until January 1, 2025 to file their BOIR with FinCEN. Reporting companies formed in 2024 have 90 days from their date of formation to file their BOIR. Reporting companies formed after 2024 will have 30 days from their date of formation to file their BOIR.
Noncompliance with the CTA can result in civil penalties of up to $500 per day and criminal penalties of $10,000 and/or 2 years in jail.
A company can learn on this site, without charge, whether it is a “reporting company” and subject to the filing requirements of the CTA. Simply answer the few questions below and the company’s “reporting company” status will appear.