What Are the Fines and Penalties Under the Corporate Transparency Act?

Update (October 2026): Under FinCEN's interim final rule of March 26, 2025, made permanent by a final rule published and effective August 14, 2026, companies created in the United States and U.S. persons no longer have to report beneficial ownership information. Only certain foreign companies registered to do business in a U.S. state must still report, and they do not report U.S. persons or U.S. company applicants. The penalties below now apply only to companies that still have to report.

The Corporate Transparency Act (CTA) sets penalties for willful violations of the beneficial ownership reporting rules. Under 31 U.S.C. 5336 and FinCEN guidance:

• Civil Penalties: Up to $500 for each day a violation continues. This amount is adjusted each year for inflation, and FinCEN's FAQ listed it as $591 when that FAQ was published.

• Criminal Penalties: A fine of up to $10,000, up to two years in prison, or both.

• What Counts as a Violation: Willfully failing to file a report, willfully filing false information, or willfully failing to correct or update a report.

• Who Can Be Liable: Both individuals and companies. This includes anyone who willfully provides false information or causes a company to fail to report.

• Correcting Mistakes: A person who learns that a report they filed has inaccurate information may avoid a penalty by filing a corrected report voluntarily and promptly, and no later than 90 days after the original report was submitted. This protection does not apply to someone who filed the original report to evade the rules while knowing it was inaccurate.

If your company was formed in the United States, you have no reporting obligation and these penalties do not apply to you. If you own a foreign company registered to do business in Florida, a business attorney can help you confirm your filing duties.

Sources: https://www.fincen.gov/news/news-releases/fincen-removes-beneficial-ownership-reporting-requirements-us-companies-and-us , https://www.fincen.gov/news/news-releases/fincen-permanently-ends-beneficial-ownership-reporting-requirements-millions , https://www.fincen.gov/boi , https://www.fincen.gov/boi-faqs