When it comes to running a business, staying on the right side of the law is paramount. One of the latest regulations that businesses need to navigate is the Corporate Transparency Act (CTA). But what happens if you don’t comply? Let’s explore the potential fines and penalties associated with CTA non-compliance.

The Consequences of Non-Compliance
Ignoring the CTA requirements can lead to significant financial and legal repercussions. Here’s what you need to know about the fines and penalties for non-compliance:

Civil Penalties

  1. Daily Fines: Failing to file the required beneficial ownership information or providing false information can result in civil penalties of up to $500 per day for each day the violation continues.
  2. Inaccurate Information: Even if you file but the information is incomplete or incorrect, you could still face fines, emphasizing the need for accuracy.

Criminal Penalties

  1. Hefty Fines: Willful failure to comply with the CTA or willfully providing false information can lead to criminal fines up to $10,000.
  2. Imprisonment: Individuals responsible for non-compliance could face up to 2 years in prison, highlighting the seriousness of these requirements.


Why Compliance is Essential
Ensuring your business is CTA-compliant is crucial not just to avoid penalties but also for several other reasons:

  1. Legal Protection: Compliance protects your business from legal and financial risks associated with fines and penalties.
  2. Business Credibility: Demonstrating transparency and ethical practices enhances your business’s reputation with customers, investors, and partners.
  3. National Security Contribution: By complying with the CTA, you help in the fight against financial crimes, contributing to a safer business environment.


Steps to Ensure Compliance
To steer clear of fines and penalties, follow these steps to ensure your business is CTA-compliant:

  1. Identify Beneficial Owners: Determine who qualifies as a beneficial owner, typically those who own or control at least 25% of the entity.
  2. Gather Required Information: Collect the necessary details for each beneficial owner, including legal names, dates of birth, residential addresses, and unique identification numbers.
  3. Submit Your Report to FinCEN: To submit your beneficial ownership information accurately and promptly, use the designated FinCEN reporting system or an approved service provider like EZ Legal.
  4. Regular Updates: Keep your information up to date with any changes in ownership or control.

Navigating CTA compliance can be complex, but you don’t have to do it alone. At EZ Legal, our mission is to provide easy legal services that simplify and streamline legal processes, making them accessible and hassle-free for everyone.

Are you ready to avoid any penalties or fines for being non-compliant with the CTA? Get Started with our easy online CTA Compliance Filing service for only $99.