Corporate Transparency Act Takes Effect, Requiring Most Auto Glass Shops to File Beneficial Owner Reports

A federal reporting requirement that took effect January 1, 2024, was still catching small business owners—including auto glass shop operators—off guard in April. The Corporate Transparency Act (CTA), enacted as part of the Anti-Money Laundering Act of 2020, requires most smaller U.S. businesses to submit a Beneficial Owner Information Report (BOIR) to the Treasury Department's Financial Crimes Enforcement Network (FinCEN).

The CTA applies to corporations, limited liability companies, limited partnerships, and similar entities formed by filing with a secretary of state—the legal structures most auto glass businesses use. The key exemption is a "large operating company" with a physical U.S. office, 20 or more full-time employees, and more than $5 million in gross receipts or sales on the prior year's tax return. Most independent auto glass shops fall below that threshold and are therefore "reporting companies" under the law.

The BOIR requires the business to disclose its legal name, any trade names, address, Employer Identification Number, and jurisdiction of formation. It also requires personal information about each "beneficial owner"—generally anyone who owns 25 percent or more of the company or exercises substantial control over it. That information includes the beneficial owner's full legal name, date of birth, current residential address, and a copy of a government-issued ID.

Companies formed before January 1, 2024, had until January 1, 2025, to file their initial reports. Companies formed on or after January 1, 2024, had 90 days from their formation date to file. FinCEN's reporting portal at fincen.gov/boi accepts the reports at no cost. Failure to file carries civil penalties of up to $591 per day and potential criminal exposure.

Glass shop owners who had not yet filed as of April 2024 were at risk of accumulating daily penalties. The CTA was designed to combat money laundering and tax evasion through anonymous shell companies, but its broad scope sweeps in the vast majority of legitimate small businesses that had never before faced this type of federal ownership-disclosure requirement.

Trade associations covering the auto glass sector began alerting members in early 2024, contributing to broader awareness. Shop operators who are uncertain about their reporting obligations should consult the FinCEN website, their business attorney, or their accountant, as the CTA's requirements are federal law and will not be waived for inadvertent non-filers.