Overview of the Corporate Transparency Act and Its Potential Impact on Massage Therapists
AMTA understands that the Corporate Transparency Act (CTA) and the new Beneficial Ownership Information (BOI) may require some massage therapists to report business ownership details to the federal government. To help you navigate these new requirements, we've prepared an overview of the Act, necessary actions, and helpful resources for massage therapists.
What is the CTA and the BOI?
The CTA was enacted into law in 2021 by the U.S. government. This law now includes the BOI which requires certain U.S. companies to report information about their beneficial owners —the individuals who control or own a significant stake in the company. The requirement applies to both newly formed and existing entities.
What is the Purpose of the BOI?
The goal of the BOI requirement is to increase transparency in business ownership and help combat financial crimes, such as money laundering, fraud, and tax evasion. By requiring companies to disclose their true owners, the report enables government authorities, financial institutions, and regulators to identify individuals who ultimately control or own a company, even if their ownership is indirect or concealed through complex structures.
Who Needs to File a BOI Report?
- Businesses including limited liability companies (LLCs), corporations or partnerships that are registered with state or tribal authorities.
- Any legal entity where ownership or control is established, including small businesses, unless explicitly exempt.
Who is Exempt from Filing a BOI Report?
- There are 23 exemptions, including publicly traded companies, nonprofits, certain large operating companies, and sole proprietorships operating under their personal name and social security numbers without formal incorporation.
- For a complete checklist to determine if your massage therapy practice needs to report, refer to the Financial Crimes Enforcement Network (FinCEN) compliance guide.
When and Where Do I File a BOI Report?
- Existing companies (before 2024) must file by January 1, 2025.
- Companies created in 2024 must file within 90 days of registration.
- Companies formed after January 1, 2025 must file within 30 calendar days of registration.
- A BOI report is filed only once but must be updated promptly if any changes occur.
BOI reports must be submitted online through the FinCEN website.
For additional information on how to file a BOI report, massage therapists can view this short online tutorial.
As always, AMTA is committed to providing massage therapists with the information and resources you need to help your practice stay compliant and succeed.
This article is informational only and does not constitute legal advice. For assistance with any legal matters, please contact your own legal advisor.