There are many laws, regulations, and practices that businesses must comply with to maintain good legal standing. Failure to comply with these requirements can lead to fines, legal problems, and a general lack of credibility with the public.
For businesses operating in the U.S., consumer rights and protections are a significant part of governance. Disclosing required information such as financial transactions, legal reports, and other documents is a requirement for all entities operating in the country.
With the passage of the U.S. Corporate Transparency Act, decision-makers must be especially careful when dealing with the information that they have made public.
What Is the U.S. Corporate Transparency Act?
The U.S. Corporate Transparency Act (CTA) was designed to give greater power to the public and consumers at large when dealing with business entities that report on ownership of assets and finances.
This act lays out rules for determining the ultimate beneficial ownership (UBO) of an organization so authorities can more easily determine accountability measures.
The CTA was created in an effort to reduce money laundering and corporate-sponsored terrorism by forcing small business owners to report their filings in association with how and when the entity was formed. This information will be made available to Federal and state law enforcement agencies.
Failure to report or false reporting can result in severe legal liabilities that could put your business at risk.
What Can You Do to Prepare?
Business leaders who want to maintain compliance with the CTA should prepare immediately, so they aren’t left dealing with unwanted fines and other liabilities. Understanding what you are and aren’t required to disclose is essential for maintaining legal transparency and your rights.
Entity management software offers many tools that businesses can leverage to protect themselves. Prepare yourself for the upcoming Corporate Transparency Act with these tech tools.
Designing, uploading, and sharing financial reports and other documents can be a cumbersome process for entity managers who aren’t properly equipped. Mundane tasks are often the most important and the most error-prone. This reality can lead businesses to lose track of important documents and dates, causing compliance errors.
For organizations that want to prepare for the U.S. Corporate Transparency Act, automated reports are a powerful tool that can be leveraged to reduce errors and improve the speed and efficiency at which documents are processed.
Automated reports give users a way to verify important information before sending the information up the pipeline, allowing them to fix mistakes before they lead to bigger problems.
Cloud-Based Entity Tracking
Keeping track of important assets and resources is a central role of entity managers. However, especially in larger organizations or those operating on a budget, there can be a great deal of added overhead associated with entity tracking.
This overhead makes it harder to control the behaviors of individuals throughout the organization, making mistakes more common and increasing the potential for liabilities.
Cloud-based entity tracking software is a great solution for entity managers who want to maintain legal compliance across the company. Modern cloud-based entity tracking improves corporate governance with a centralized source for managing filings and communicating important information.
When preparing for the U.S. Corporate Transparency Act, cloud-based entity tracking is a vital tool.
For many organizations, collaborating across projects is central to meeting deadlines and maintaining legal compliance. If individuals and teams aren’t on the same page, they can impede the flow of information, increasing the chances that important legal matters are forgotten or ignored.
Businesses that want to improve their compliance management should consider planning for large-scale collaboration to effectively mitigate potential liabilities.
Putting support systems in place so that all questions and concerns are addressed as quickly as possible will ensure all of the aspects of the U.S. Corporate Transparency Act can be abided by.
Organizations that fail to properly manage their workforce will find it nearly impossible to properly maintain compliance measures. If there are any holes in the legal process, decision-makers need to be immediately aware. With centralized oversight measures, businesses can ensure the entire organization has a single point of contact.
By creating a single source of truth for decentralized systems to abide by, decision-makers can limit the potential for errors in reporting and management. This approach will make it easier to reinforce the rules of the U.S. Corporate Transparency Act.
Get the Tools You Need to Maintain Legal Compliance with Athennian
Are you worried about your organization’s ability to comply with the U.S. Corporate Transparency Act? Don’t be held back by liabilities. Athennian’s entity and subsidiary management software is here to guide you through the legal process.
At Athennian, we know that no matter what the size, firms have many compliance problems that they’re dealing with at any given time. Our services give you the tools you need to create growth without the added overhead.
Discover the efficiencies of our entity management platform. Request a customized demo with a business entity management expert.