As of January 1, 2024, Ohio companies have an ongoing reporting requirement under the Corporate Transparency Act (“CTA”). This federal law requires companies to report information about individuals who directly and indirectly own or control the company to the Financial Crimes Enforcement Network (FinCEN). Failure to comply with the reporting obligations under the CTA or filing false information could result in civil and criminal penalties for the reporting company and related parties, including officers of a corporation and members of an LLC.
The CTA exempts companies in specific industries from complying with reporting requirements. Exemptions include banks, credit unions, insurance companies, and tax-exempt entities. Inactive companies and companies that generate annual gross receipts or sales of over $5,000,000 may also be exempt if all criteria are satisfied. All other companies are subject to the CTA and the reporting obligations.
Entities formed on or before January 1, 2024, have until January 1, 2025, to file the initial report.
Don’t wait to determine if your entity is required to report its ownership information under the CTA. For details on the CTA and how your company can fulfill its reporting obligations, feel free to contact any of these Pickrel, Schaeffer and Ebeling attorneys at 937.223.1130 or email Katie Wahl at firstname.lastname@example.org, Jerry McDonald at email@example.com, or Dave Montgomery at firstname.lastname@example.org.