Importance of Specialized Corporate Transparency Act Filing Software for Firms

With the implementation of the Corporate Transparency Act (CTA), an estimated 35 million U.S. companies are mandated to file Beneficial Ownership Information reports with the Financial Crimes Enforcement Network (FinCEN) starting January 2024. Failure to comply invites substantial fines of up to $10,000. These filings necessitate the disclosure of detailed information regarding each beneficial owner and company applicant associated with the reporting entity.

This regulatory requirement will lead to 40% of the affected companies enlisting professional services firms to navigate this complex submission process, which, without the aid of specialized software, can be a laborious task potentially taking up to three hours per report for staff at each firm.

The filing process comprises six meticulous steps:

Firms must first dedicate 30 to 60 minutes per client to explain the nuances of the new legislation.
The collection of beneficial ownership information from clients follows, a step that can extend another 30 to 60 minutes, especially without the use of streamlined software, often involving cumbersome PDFs and client queries.
The acquisition of identification documents from each beneficial owner through secure channels is essential for the FinCEN report.
Thereafter, the assimilation of this data and documentation into a file management system is required.
The actual filing of the report with FinCEN’s system is the next step, which could take approximately 20 minutes in the absence of automated software.
Finally, robust tools are necessary for firms to efficiently manage large client volumes, track reports, send reminders, and confirm filings, with manual methods consuming an additional 30 minutes per report.

Automation solutions are emerging within the filing industry to streamline this filing process and significantly reduce the time spent per filing—from the extensive 3-hour manual process to a concise 10 to 15 minutes. You can find recommended solutions at the bottom of this page.

Such platforms not only expedite the filing procedure for clients, converting a potentially convoluted 3-hour task into a straightforward, brief online experience but also foster client goodwill and referrals for firms leveraging user-friendly CTA filing tools.

With an estimated 35 million companies needing to adhere to this filing requirement and reports valued at an average of $600, the potential $21 billion filing market is increasingly seeking out tailored software solutions to transition smoothly into this new era of compliance.

Recommended Software for Corporate Transparency Act Filing

We will maintain an up-to-date roster of recommended Corporate Transparency Act filing software as new solutions become available, ensuring firms have access to the best tools for their compliance needs. Find recommended CTA filing software below.

Reporting Companies with Simple Ownership (Up to 10 owners )

We recommend companies with simple ownership structures take their list of owners to an online filing platform to complete their reports. TurboCTA.com is an affordable solution for business owners.

Reporting Companies with Complex Ownership (More than 10 owners)

Many reporting companies are offloading FinCEN reporting to a law or accounting firm. To find a firm specializing in Corporate Transparency Act filings, we recommend visiting FincenList.com