NLBMDA and Wolters Kluwer are Partnering to Ensure Members Become Compliant Under the Corporate Transparency Act's Reporting Requirements

By January 1, 2025, over 30 million small businesses must file Beneficial Ownership Information (BOI) reports with the Financial Crimes Enforcement Network (FinCEN) under the Corporate Transparency Act (CTA). This new mandate impacts a wide range of businesses, making it crucial to grasp both the initial filing and ongoing compliance.

About the Corporate Transparency Act (CTA)
The Corporate Transparency Act (CTA) is a federal law that requires certain entities to disclose information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN). The CTA went into effect on January 1, 2024. The CTA aims to prevent and combat money laundering, terrorism financing, corruption, and tax fraud. It does this by requiring entities to disclose information about their beneficial owners, such as their full legal name, date of birth, residential address, and a unique identifying number. The CTA applies to domestic and foreign entities that are corporations, limited liability companies, or other similar entities that are created or registered to do business in the U.S.

The CTA imposes civil and criminal penalties for violations, including:
Reporting violations
Up to $500 in civil penalties for each day a violation continues, or up to $10,000 in criminal penalties, imprisonment for up to two years, or both.

Disclosure-and-use violations
Up to $500 in civil penalties for each day a violation continues, or up to $250,000 in criminal penalties, imprisonment for up to five years, or both.

NLBMDA Webinar:
To help LBM dealers understand and comply with these requirements, NLBMDA developed this resource page and hosted a webinar on Thursday, November 7 at 1:00 PM Eastern. To watch the recording of the webinar, click here.

Who has to file?
Any domestic corporation/company with less than 20 full time and/or less than $5 million in gross receipts or sales must file a Beneficial Ownership Information Report.

Not sure if your business needs to file? Take the short BizFilings’ BOI quiz to find out your filing status.

Time is running out to meet BOI reporting requirements. The National Lumber & Building Material Dealers Association has partnered with Wolters Kluwer to offer the BizFilings Beneficial Ownership Information Filing Solution—a streamlined, automated tool that reduces filing times and the risk of errors, ensuring compliance with FinCEN.

Avoid penalties and fines - get organized, save time, and file your BOI report today. 

Questions?
NLBMDA encourage all members and industry stakeholders to consult legal counsel for additional guidance. For general questions contact NLBMDA at [email protected].

Additional Beneficial Ownership Information Resources

Top 5 Things Small Businesses Need to Know About the Corporate Transparency Act (CTA) Additional Resources: The 23 exemptions from the Corporate Transparency Act’s beneficial ownership information reporting requirement NLBMDA Exclusive Webinar: Held on Thursday, November 7 - Click here for the recording.  Entities can also submit beneficial ownership information for FREE directly to FinCEN through its online Beneficial Ownership Secure System (BOSS).	Beneficial Ownership Information Ownership What information is required?	Beneficial Ownership Secure Filer Fast, Simple, & Secure	Beneficial Ownership Data Security & Ownership