Update to Federal Corporate Transparency Act
November 27, 2024
Dear Yoga Alliance Community,
We wanted to inform you of The Corporate Transparency Act and how it may impact your yoga business.
The federal Corporate Transparency Act (CTA) requires U.S. companies to disclose their beneficial owners. This legislation seeks to increase transparency in corporate ownership to combat money laundering, terrorist financing, and other illicit activities.
WHAT YOU NEED TO KNOW:
- Beneficial Ownership Information Reporting: U.S. companies are required to disclose their beneficial owners and submit an initial Beneficial Ownership Information report (BOI) by January 1, 2025. According to the Financial Crimes Enforcement Network (FinCEN), “a beneficial owner includes any individual who, directly or indirectly, either (1) exercises substantial control over a reporting company, or (2) owns or controls at least 25 percent of the ownership interests of a reporting company.” Learn more about beneficial owners, exemptions, and more here.
- Reporting Requirements: Entities must submit detailed reports of their beneficial owners to the Financial Crimes Enforcement Network (FinCEN). They must apply for a FinCEN ID number. FinCEN has provided step-by-step instructions for how to apply.
- Penalties for Failure to Comply: Willful failure to comply with the CTA can result in material civil and criminal fines and penalties.
Learn more here:
Yoga Alliance members have access to a legal professionals to discuss business policies through the Membership Assistance Program.
Learn More
If you have any questions, please contact yaadvocacy@yogaalliance.org.