The arrival of the new year brought about a change for many corporations in the United States. As an element of the Corporate Transparency Act of 2021, a considerable number of companies now have the obligation to disclose information about their beneficial owners, in other words, those individuals who exert the ultimate control over the company. You can find more about this federal act here.
Realizing the burden this change may exert on the already complex operational landscape of companies, legal technology company SixFifty has launched a free tool aimed at assisting corporations to comply with this new obligation. Whether a company needs to file a report or exempt from it can be determined using this tool. Considering the fact that there are 23 exemptions from filing, SixFifty’s support can significantly be beneficial.
Upon using the tool, companies are asked questions pertinent to their business, and based on their answers, a worksheet is created. This analysis encapsulates all of the 23 exemptions and how each one pertains to the specific organization. SixFifty advises companies to maintain this worksheet at hand, as a precautionary measure in case of a federal audit or investigation.
For those companies falling within the obligatory filing category, SixFifty’s tool goes a step further and provides instructions on how the filing should be done.
The CEO of SixFifty, Kimball Dean Parker, emphasizes the importance of compliances. Avoiding criminal and civil penalties requires companies to take the Corporate Transparency Act seriously. The fundamental objective of this tool being to help companies identify whether or not they fall within the ambit of the Act, and to formulate a document that is evidence of a good faith analysis.
You can access this free tool here.
For more information about the above topic, please refer to this article.