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The Corporate Transparency Act (CTA) represents a significant shift in the regulatory landscape for businesses in the United States, requiring them to report their beneficial ownership information (BOI) to the Financial Crimes Enforcement Network (FinCEN). This new mandate has led legal professionals, CPAs, and advisors to adopt varied approaches to assist their clients in complying with the regulations. In light of this, the question stands: how are legal professionals approaching the CTA? Here’s a closer look at how they are navigating the CTA compliance terrain.
Legal Professionals Approach the CTA: White-Glove Service
One way legal professionals approach the CTA is by taking a comprehensive approach, offering white-glove service to clients. This includes not just initial filings but also managing subsequent updates to the BOI as required. 
While this service model demands significant resources, it also opens up a new revenue stream for firms willing to invest in it. The primary challenge here is not the initial filing but the ongoing management of updates, especially given the tight 30-day deadline for reporting any changes. Firms offering this service must establish robust mechanisms for smooth communication and operation, ensuring changes are filed promptly to avoid penalties. Despite the resource intensity, many clients expect this level of service, making it a valuable offering for firms that can deliver.
Legal Professionals Approach the CTA: Referral
In contrast, some professionals opt out of the direct filing process, instead referring clients to trusted resources or platforms. This approach allows firms to navigate the complexities of CTA compliance without overextending their resources. Clients with simpler ownership structures may find it easy to manage their filings independently with the right guidance, while those with more complex arrangements might need specialized services. Referrals can lead clients to other firms offering white-glove services or to platforms equipped to help business owners with their filing process.
Legal Professionals Approach the CTA: Initial Filing Support
A middle-ground approach involves legal professionals advising clients on the CTA and assisting with the initial BOI report filing but not engaging in the ongoing maintenance of updates. This model caters to clients who are capable of handling minor updates on their own with some initial guidance. It strikes a balance, providing essential support without the commitment to continuous update management, making it an attractive option for both professionals and clients who prefer a less hands-on approach while still receiving the initial guidance needed to file correctly.
The Role of Technology Solutions
Secure Compliance steps in to bridge the gap with solutions designed to manage all aspects of BOI reporting. Our services, including SecurePRO and SecureFILE, are designed for flexibility, allowing them to function both independently and in conjunction, to meet the varied demands of clients.
The best part is, you don’t have to pick one platform. SecurePRO offers features such as user management tools, secure data collection, and e-signatures provide essential tools for professionals.
SecureFILE offers step-by-step guidance through an intelligent wizards that make compliance accessible for all business owners, regardless of their familiarity with the CTA.
Each of these approaches has its merits and challenges.
- Offering white-glove service can significantly enhance client satisfaction and loyalty but requires an investment in resources.
- Referring clients to external resources can be a practical solution for firms unable to commit these resources but may result in missed opportunities for additional revenue or building the client relationship.
- Providing initial filing support offers a compromise, helping clients navigate the initial compliance hurdle while empowering them to take charge of subsequent updates.
As legal professionals and advisors continue to navigate the CTA landscape, the choice of strategy will largely depend on their firm’s capabilities, resources, and client expectations.
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