All chapter members should be aware of a new federal requirement, both with respect to their electrical contracting businesses and any personal investments held in corporations, limited liability companies, or even (potentially) trusts. Beginning January 1, 2024, the Corporate Transparency Act (“CTA”) requires certain companies (“Reporting Companies”) to disclose their beneficial ownership information (“BOI”) in reports filed through the BOI E-Filing System. The CTA is an onerous new requirement that will impact many contractors’ personal and business assets.
The following memorandum prepared by Katie McDonough, Esp. of Hinckley Allen, NECA's legal counsel, aims to outline the CTA for NECA Contractors. It clarifies which companies are considered a “reporting company” and which are exempt. Understanding the law is essential because there are penalties for noncompliance, up to and including criminal repercussions.
As a reminder, this memorandum serves to convey general information, not legal advice. Each NECA Contractor should consult their corporate counsel and work with your accountants to ensure all filings are timely made.