CTA Frequently Asked Questions for MTNA Members

  1. What is the CTA?
    The Corporate Transparency Act (CTA) went into effect on January 1, 2024. This new federal regulation requires most small businesses (“Reporting Company”) to file a BOIR (Beneficial Owner Information Report) to FinCEN (Financial Crimes Enforcement Network), which is part of the U.S. Department of the Treasury.

  2. Does the CTA affect me?
    We estimate that 10-15% of MTNA members will be affected. Any small business entity (corporation, partnership, LLC, etc) formed by a filing with a Secretary of State is deemed a “Reporting Company” and must file a BOIR.

  3. What is a BOIR?
    Beneficial Owner Information Report, which discloses “beneficial owner” information.

  4. Who is a “Beneficial Owner?”
    A Beneficial Owner is an individual who owns or controls at least 25% of a company or has substantial control (Officers, Board Members, etc) over the company.

  5. What is a “Reporting Company”?
    A “reporting company” includes (1) any corporation, LLC, limited partnership or similar entity created by filing a document with any US state, territory or Indian tribe (domestic reporting companies), and (2) any non-US entity that registers to do business with any US state, territory or Indian tribe (foreign reporting companies). Trusts (other than trusts created by a filing, such as statutory or business trusts) are themselves not reporting companies.

  6. Are “sole proprietors” required to file a BOIR?
    No. Only entities that were formed by filing with a Secretary of State (such as a corporation or LLC) is deemed a “reporting company” and required to file a BOIR.

  7. Are “sole proprietors” with a “DBA” name required to file a BOIR?
    No. “DBA” is not an entity type. Only entities that were formed by filing with a Secretary of State (such as a corporation, partnership or LLC) are required to file a BOIR.

  8. Are state or local MTNA affiliates required to file a BOIR?
    No. There are 23 types of entities that are exempt from filing, including tax-exempt entities (non-profits), which includes MTNA affiliates.

  9. Link to the BOIR Form

  10. May the BOIR be printed and mailed?
    No, the BOIR must be filed online.
    (Note: must have current version of Adobe Acrobat or Reader.)
    • XFA-based PDF forms and policy-protected documents require Adobe Acrobat or Adobe Reader, version 8 and later. See Adobe Downloads for downloading the latest Reader or Acrobat.

  11. How long does it take to complete the BOIR?
    MTNA members report it takes about 10–15 minutes if you have the necessary information ready.

  12. What information is required to file a BOIR?
    The Reporting Company’s: (1) full legal name, (2) any trade name or “doing business as” (DBA) name, (2) complete current U.S. address, (3) state, Tribal, or foreign jurisdiction of formation, and (4) IRS Employer Identification Number (EIN).

    Each Beneficial Owner’s: (1) full legal name, (2) date of birth, (3) complete current address, and (3) uploaded image of U.S. passport or State driver’s license or Identification document issued by a state, local government, or tribe along with that document’s unique identifying number and its issuing jurisdiction.

  13. What is the cost to file a BOIR?
    There is no fee. However, failure to comply may result in a civil penalty of $500 per day for each day that the violation continues, or a criminal fine of $10,000, imprisonment for two years, or both.

  14. When is the deadline to file a BOIR?
    Businesses created prior to 2024 have the remainder of 2024 to file.
    Businesses created during 2024 have 90 calendar days to file.
    Businesses created after 2024 have 30 calendar days to file.

  15. Is a BOIR filed every year?
    No. This is a one-time filing unless there are changes to your entity’s “beneficial ownership.”

  16. Where to turn for help?
    FinCEN (www.fincen.gov/contact) or personal legal counsel.

  17. Are there additional resources to assist in filing a BOIR?