If you’re a business owner, there’s a critical new law you can’t afford to ignore. The Corporate Transparency Act (CTA) requires most U.S. small businesses—including LLCs and corporations—to report their ownership information to the government. What’s more, the agency responsible, FinCEN, won’t send reminders. Missing this filing could cost you thousands in fines, making it essential to tackle this requirement sooner rather than later.

The CTA is all about transparency. It requires companies to report anyone who owns or controls at least 25% of the business, along with their basic personal information. This is meant to prevent illegal activities like money laundering. But it also means small businesses—yes, even the ones with only a few people involved—need to follow this new rule.

Most LLCs and small corporations will need to file. For businesses formed before January 1, 2024, you need to file by January 1, 2025. For new businesses formed after January 1, 2024, the filing is due within 30 days of formation.

Just like tax returns and other government processes, this can be confusing for many people. If your local accountant is set up to assist with filing, keep an eye out for a message or mailing from them. If not, reach out to them or a BOI filing service as soon as possible.