New Federal Law Requires Auto Glass Shops to Register

A federal law increasing reporting requirements for companies operating in the United States took effect on January 1, 2024. The Corporate Transparency Act (CTA) applies to most companies, including small and privately held businesses.

The CTA requires more information from every corporation, limited liability company (LLC), limited partnership (LP) or any similar organization formed by filing the associated paperwork with a secretary of state. This includes foreign companies registered for business in a U.S. state.

The CTA affects small and privately held businesses, which were not previously mandated to report at this level. The act includes an exemption for a “large operating company,” which is a company operating out of a physical U.S. office with 20 or more full-time employees and more than $5 million in gross receipts or sales listed on its previous year’s tax return.

Companies that fall within the CTA’s specifications are called “reporting companies,” and the act mandates they submit a new document called a Beneficial Owner Information Report (BOIR) to the U.S. Department of Treasury’s Financial Crimes Enforcement Network.

The BOIR contains information about the reporting company, such as its legal name and any other names, its address, Employer Identification Number and jurisdiction of formation. The BOIR also includes any “beneficial owner’s” full legal name, date of birth, current residential address and a copy of their driver’s license or passport.

Beneficial owners possess 25% or more of the company or have “substantial control” over the company. Current companies have until January 1, 2025, to submit their first BOIRs.

Sean Fagan owns the small business Appalachian Auto Glass in Boone, North Carolina. He first learned of the CTA from the news.

“I really have no idea how it’s going to affect my business,” he says. “All I know is they’re wasting my time doing something they already have.”

Fagan initially wanted to wait to submit his BOIR, knowing he had until the beginning of 2025 to turn it in, but he’s taking his accountant’s advice to submit the information soon.

Fagan isn’t the only one with objections to the CTA. The act has already generated legal action, and on March 1, the U.S. District Court for the District of Alabama declared it unconstitutional.

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2 Responses to New Federal Law Requires Auto Glass Shops to Register

  1. Barbara E Day says:

    they are obviously looking for new ways to tax us

  2. Mick says:

    More like a communist country every day. Too many rules and regulations. What happened to free enterprise.

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