Own a Private Practice? You Need to Comply with the Corporate Transparency Act

Social workers operating a solo or group private practice should stay apprised of applicable federal and state laws relevant to conducting their business. This NASW Legal Issue explores the private practice social worker’s obligation to comply with the Corporate Transparency Act (“CTA”), a law passed in 2021 to enhance transparency in entity structure and ownership. Private practice social workers should familiarize themselves with the basics of setting up a private practice through reviewing applicable state and federal law and available NASW resources.

If you directly or indirectly have a significant ownership stake or control in a reporting company, you must file a report with your Beneficial Ownership Information (BOI) to the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN). Filing is simple, secure and free of charge.

Observe the following important deadline to report BOI, which depends on the date of company formation:

• Companies created before January 1, 2024, must file BOI by January 1, 2025.
• Companies created on or after January 1, 2024, must file BOI within 90 calendar days of receiving notice of the company’s registration.
• Companies created on or after January 1, 2025, must file BOI within 30 calendar days of receiving notice of the company’s registration.

See the full NASW Corporate Transparency Act Legal Issue here.

From the North Carolina Secretary of State:

Beginning January 1, 2024, certain types of limited liability companies, corporations, and other similar entities must report information about their beneficial owners—the persons who ultimately own or control the company—to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN). Learn more here.