Key Facts About the Corporate Transparency Act for Dental Firms

The Corporate Transparency Act, or the CTA, requires many companies in the United States to report information about the individuals who own or control them, in an attempt to curb illicit finance and money laundering. It went into effect January 1st of this year.

Reporting companies formed before January 1st, 2024, have until January 1st, 2025 to file their beneficial ownership information reports, while reporting companies established or registered to do business in the United States in 2024 have 90 calendar days to file after receiving notice that their company’s creation or registration is complete.

What does this mean for my dental practice?

Your dental practice must file under the Corporate Transparency Act if it employs fewer than 20 people, and/or generates less than $5 million (gross receipts) in revenue annually. If your practice meets one or both of these criteria, you’ll need to file your Beneficial Ownership Information Report to the U.S. Department of Treasury’s Financial Crimes Enforcement Network. You’ll need to include the practice’s legal name, any trade names, the practice’s current address, the jurisdiction where the business was formed, and the business’s Tax ID Number.

What is a Beneficial Owner?

Any domestic reporting company, including LLCs, corporations, and more, and foreign reporting companies that do business in the U.S. will be required to submit BOI reports. The CTA is designed to track beneficial owners, or people who directly or indirectly have a significant ownership stake in a company. In other words, this person must:

• Have major influence on the reporting company’s decisions or operations,

• Own at least 25% of the company’s shares,

• or have a similar level of control over the company’s equity.

This could include board members, contractors, consultants, and more.

Subsidiaries

If your practice is a subsidiary of an entity exempt from the CTA, then the practice is also exempt. However, if any part of the practice is owned by an entity that is required to file under the CTA, then the practice must also file a report.

General Rules

If your practice or organization has an information change, such as a change in address, an updated report must be submitted to FinCEN within 30 days. If your practice was established before 2024, you have until January 1st, 2025 to submit your report. Any errors you notice on the completed report must be fixed within 30 days of you noticing the error. It’s up to the practice or organization to stay compliant with the CTA. If you need more information, visit the FinCEN website and contact our firm for assistance.