Georgia Businessmen Advised to Ensure Compliance with Beneficial Ownership Transparency Requirements

New Regulations for Georgia Businesses: Understanding the Corporate Transparency Act (CTA)

The Financial Crimes Enforcement Network (FinCEN) has mandated that certain businesses in Georgia submit Beneficial Ownership Information (BOI) reports as part of the Corporate Transparency Act (CTA). This move aims to prevent illicit financial activities by increasing transparency and accountability within corporate entities.

Who is Affected by the BOI Report Filing Obligation?

• Companies created by filing a document with the Secretary of State of Georgia or similar office
• Except for publicly traded companies, certain regulated entities, and businesses meeting specific operational and financial thresholds
• 23 types of Georgia entities exempt from filing BOI reports

Identifying Beneficial Owners

• Individuals with direct or indirect ownership interests in the company
• Typically those owning 25% or more of equity interests or exercising significant control over it
• Companies must submit their BOI report within 30 calendar days after discovering any changes in beneficial ownership information

Consequences of Non-Compliance

• Civil penalties, including fines of up to $500 per day
• Criminal penalties such as imprisonment for up to two years and/or a fine of up to $10,000

Filing BOI Reports: A Simplified Process

• Regularly review and update beneficial ownership information when necessary to ensure ongoing compliance with the CTA
• Our company has developed a proprietary filing system that interfaces with FinCEN’s e-filing system, allowing companies to file BOI reports in three simple steps while reducing filing time

Assessing Your BOI Reporting Obligations

• Use our assessment tool “Do I Need to File a BOI Report?” to determine whether you need to submit a report
• Businessmen operating in Georgia who are unsure about their BOI reporting obligations can use this tool to ensure compliance with the CTA