CTA Requirements - Mission to Grow: A Small Business Guide to Cash, Compliance, and the War for Talent - Episode #86

Mission to Grow: A Small Business Guide to Cash, Compliance, and the War for Talent

On this week’s episode of Mission to Grow, host Mike Vannoy sits down with Chris Bell, Regulatory Counsel for Asure. Mike and Chris then delve into the details of the CTA (Corporate Transparency Act), why it was enacted, its potential impact on small businesses, and the necessary steps to comply with the law. They also share information on exemptions to the Act and how businesses can register with the Financial Crimes Enforcement Network (FinCEN). It’s an insightful episode you don’t want to miss!

Takeaways:

• Passed in 2021, the CTA is an act that mandates businesses to report their beneficial owner information to the federal banking regulators. Previously, this responsibility fell on the banks. However, Congress shifted this duty to businesses. This act is designed to limit money laundering practices by identifying true business owners.
• Contrary to what one might expect, smaller businesses bear this regulatory burden, not larger entities. The CTA exempts entities with more than 20 employees and $5 million in revenue from the reporting requirement.
• Comply with the reporting requirements of the CTA to avoid hefty fines up to $10,000, and potential legal trouble. Reporting involves registering with FinCEN and providing personal and company information.
• Businesses have to register with the Financial Crimes Enforcement Network (FinCEN) to fulfill the CTA requirements. The process involves submitting personal information, such as name, date of birth, address, Social Security Number, and identification details.
• There are 23 exemptions to this rule, most of which apply to regulated entities like financial institutions and accounting firms. It also includes companies that meet a "large operating exception" (more than 20 employees and $5 million in revenue).

Quote of the Show:

• “If you don't meet one of the twenty-three exemptions under this new law, then you will have a reporting requirement annually. If you don't meet that reporting requirement, then you're going to pay some fines.” - Chris Bell

Links:

• Asure: https://www.asuresoftware.com/
• Chris’ LinkedIn: https://www.linkedin.com/in/chris-w-bell-01648079/
• FinCEN: https://fincen.gov/
• CTA Exemptions: https://www.wolterskluwer.com/en/expert-insights/the-23-exemptions-from-the-corporate-transparency-act

Ways to Tune In:

• Spotify: https://open.spotify.com/show/2XThTdn7YC1lkAm0PgZUkj
• Apple Podcasts: https://podcasts.apple.com/us/podcast/mission-to-grow-a-small-business-guide-to-cash-compliance-and-the-war-for-talent/id1725890976
• Amazon Music: https://music.amazon.com/podcasts/328dddd0-3c4f-4b07-a0d3-13bdcb418486/mission-to-grow-a-small-business-guide-to-cash-compliance-and-the-war-for-talent?refMarker=null
• Audible: https://www.audible.com/pd/Mission-to-Grow-A-Small-Business-Guide-to-Cash-Compliance-and-the-War-for-Talent-Podcast/B0CS71KQFM?qid=1706208857&sr=1-1&ref_pageloadid=not_applicable&ref=a_search_c3_lProduct_1_1&pf_rd_p=83218cca-c308-412f-bfcf-90198b687a2f&pf_rd_r=A1ME8MBECSVZ6K4D7CNT&pageLoadId=QBtg12mqKsuZPLGY&creativeId=0d6f6720-f41c-457e-a42b-8c8dceb62f2c
• Podchaser: https://www.podchaser.com/podcasts/mission-to-grow-a-small-busine-5591006
• Transistor: https://missiontogrow.asuresoftware.com/
• YouTube: https://youtu.be/KwfgyXIauSc