The Corporate Transparency Act (CTA) is a federal regulation that may impact your chiropractic business. Whether running a single practice or managing multiple locations, compliance with this law is crucial to avoid significant penalties. Here’s what you need to know to stay ahead of the requirements.
Why the Corporate Transparency Act Matters
The CTA, enforced by the Financial Crimes Enforcement Network (FinCEN) under the U.S. Department of the Treasury, aims to combat financial crimes such as money laundering, corruption, and tax fraud. By requiring businesses to report beneficial ownership information, the government hopes to increase transparency and accountability in business practices.
For chiropractic business owners, this means ensuring your practice meets the reporting criteria and deadline of January 1, 2025, to avoid fines and legal issues.
Advertisement
Does the CTA Apply to Your Chiropractic Practice?
The law applies to you if your chiropractic business is structured as a corporation, limited liability company (LLC), or other entity registered to do business in the United States. Sole proprietorships and certain larger entities may be exempt, but most small- to medium-sized practices fall within the scope of the CTA.
What Information Must Be Reported?
As a chiropractic business owner, you must disclose information about:
- Your Business
- Full legal name and any trade names or DBAs.
- Current U.S. business address.
- Taxpayer Identification Number (TIN).
- Beneficial Owners and Applicants
- Full legal names of owners or controlling individuals.
- Dates of birth.
- Current residential addresses.
- Identification documents (e.g., driver’s license, passport).
A “beneficial owner” is anyone who owns or controls at least 25% of the business or exercises “substantial control,” which includes decision-making authority or senior officer roles such as CEO or CFO.
Is This a One-Time Filing?
No. Chiropractic businesses must update their filings within 30 days of any changes, including:
- Ownership changes.
- Updates to beneficial owner information.
- Changes to the business name or address.
Penalties for Non-Compliance
Failing to comply with the CTA can lead to:
- Civil penalties of $500 per day for ongoing violations.
- Criminal fines of up to $10,000.
- Up to two years of imprisonment.
Liability extends to individuals who knowingly provide false information and those who fail to report or update required details.
How to File
You can file your beneficial ownership information online through FinCEN’s BOI E-Filing website. Prepare the following documents and details:
- Scanned copies of identification documents (driver’s license or passport).
- Your business’s TIN or EIN.
- Your business and owner addresses.
Visit FinCEN’s E-Filing website and select “File BOIR” to get started.
Staying Compliant is Key
As a chiropractic business owner, you’re already juggling compliance with Medicare, HIPAA, and other healthcare regulations. The CTA adds another layer of responsibility, but it’s essential to protect your practice from penalties and ensure your operations align with federal law.
For more guidance, consult your healthcare attorney or compliance expert. If you have questions, contact ClinicArmor at info@clinicarmor.com. You can also watch a recent webinar on the Corporate Transparency Act here.
By staying informed and proactive, you can focus on delivering excellent chiropractic care while ensuring your business operates securely and legally.
Dr. Ray Foxworth, DC, FICC, is the visionary behind ChiroHealthUSA, serving as its esteemed founder and CEO. With over 39 years of dedicated service in chiropractic care, Dr. Foxworth has navigated the complexities of billing, coding, documentation, and compliance firsthand. His rich experience includes roles as the former Staff Chiropractor at the G.V. Sonny Montgomery VA Medical Center and past chairman of the Chiropractic Summit and Mississippi Department of Health.
Dr. Foxworth is deeply committed to advancing the chiropractic profession, which is evident through his leadership roles. He is an at-large board member of the Chiropractic Future Strategic Plan and holds an executive board position with the Foundation for Chiropractic Progress.
