Penalties Under The Corporate Transparency Act (“Cta”)

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There are two types of penalties (civil and criminal) for each violation of the CTA. Any “person” (e.g., an individual or other entity) who willfully fails to file complete and accurate reports, or fails to provide updated reports, will face penalties of up to $10,000 (accruing at $500 per day that the violation is continuing) and/or imprisonment for up to two years.

There is a limited safe harbor for inaccurate reports where a corrected report is filed within 30 days after the date on which the reporting company becomes aware, or has reason to know of, the inaccuracy in the report, but such corrected report must be filed within 90 days of the filing of the original inaccurate report. 

As for compliance costs, FinCEN estimates it will cost the bulk of reporting companies $85.14 to prepare and file an initial report. For those companies that have a “complex structure” (i.e., 8 beneficial owners and 2 additional individuals as company applicants), FinCEN estimates that those reporting companies will incur over $2,600 in expenses to complete an initial filing, including $2,000 of professional fees.