The Corporate Transparency Act (CTA) mandates certain U.S. businesses to disclose their beneficial owners’ information to the Financial Crimes Enforcement Network (FinCEN). This legislation primarily targets small corporations, LLCs, and similar entities, requiring them to report details of anyone with ownership or substantial control, defined as holding at least 25% ownership or having significant responsibility to control the company (Senior Officer). The issue of “substantial control” will only be of concern to businesses that do not qualify for a CTA reporting exemption, particularly the large operating company exemption available to companies that both have 20 full-time employees and reported gross revenue of $5 million on their most recent annual tax return. The aim is to curb illegal activities like money laundering and financial fraud by enhancing transparency.

The initial reporting for existing entities must be completed within one year of the CTA’s implementation rules (by 1/1/25), while new entities formed in 2024 must report within 90 days of formation and new entities formed in 2025 and beyond must report within 30 days of formation. Non-compliance can result in substantial penalties, $500/day up to $10,000 and up to 2 years in jail, underscoring the importance for businesses to adhere to these requirements diligently.

The market potential associated with the Corporate Transparency Act (CTA) is substantial. The U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) estimates that the rule will impact approximately 32.6 million reporting companies in 2024 alone, with five million new reporting companies formed and registered every year going forward.

This includes newly formed entities and existing small businesses, specifically corporations and limited liability companies, that do not operate under extensive reporting requirements similar to publicly traded companies. The need for compliance services, legal consultation, and software solutions to manage and report beneficial ownership information creates a lucrative opportunity for businesses offering these services. With stringent penalties for non-compliance, there is a significant incentive for affected entities to seek external expertise, thereby expanding the market for compliance-focused solutions.

FinCEN Shield is a premier provider of compliance solutions, specializing in helping businesses navigate the complexities of the Corporate Transparency Act (CTA) and FinCEN’s Beneficial Ownership Information (BOI) reporting requirements.

Established by experts in finance, legal, and technology, FinCEN Shield excels in streamlining the compliance process for both direct business owners and professional firms. We offer a blend of advanced technology and expert advisory services to ensure that businesses can meet their legal obligations with ease and precision. Our services include filing assistance, issuance of compliance certificates, digital record-keeping, and custom compliance strategies, tailored to meet the unique needs of each client.

Whether providing direct services or enabling professional firms to enhance their service offerings through white-label solutions, FinCEN Shield is dedicated to making CTA compliance accessible, manageable, and secure for all businesses​.

The FinCEN Shield Partner Program offers a lucrative opportunity for affiliates to earn through client referrals. Affiliates receive a 20% commission on the lifetime value (LTV) of clients they bring to the program, ensuring ongoing rewards as clients continue to use services.

Additionally, the program includes a 5% sub-affiliate commission, allowing Partners to earn from the activity of others they recruit into the program. This multi-tiered commission structure is designed to maximize earning potential and reward affiliates for both direct and indirect contributions to the growth of the network.

The program offers a range of resources, including marketing materials and dedicated partner managers, to help maximize conversions. Additionally, partners benefit from performance-based bonuses and a straightforward payout system, making it an attractive option for those looking to monetize their audience effectively.