Corporate counsel to new, emerging and established enterprises in North Carolina and Nationwide

SUMMATION

In this site we have sought to impart something of the experience, methods and philosophy which Hedger & Hedger brings to the representation of its clientele. While our practice extends to Business Organization & Operations, Mergers & Acquisitions, Executive & Deferred Compensation and Debt & Equity Financing, all areas of our expertise are focused on the concerns of business owners and executives. Furthermore, our practice areas are mutually supporting so as to permit a comprehensive, rather than piecemeal, approach to our clients’ needs. We seek by these means an increased ability to anticipate both the problems and opportunities generated by the dynamic business enterprise. Our clients’ growth, together with our own, is the measure of our success.

THE CORPORATE TRANSPARENCY ACT IS HERE!

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.