Is anything posted online free to use?? 🤔 Do I lose my copyright if I post my work on social media?? 😨
Common questions worth answering—and Dave did just that at Denver Startup Week! Hit share if you find this post helpful. ✅
What the Heck is the Corporate Transparency Act and Does it Apply to Me?
Does this new federal law apply to individual artists or creative entrepreneurs? The Corporate Transparency Act says that most small businesses, including LLCs, must file information about the company and its owners with the US Department of Treasury.
If you operate a business for your creative work, we can help you comply with this new law. CBCA’s Colorado Attorneys for the Arts (CAFTA) is hosting an informative and interactive webinar (for free!) where Dave will tell you what you need to know and get your questions answered.
Register in advance through this link.
You have a LOT of rights when it comes to being the owner of a copyright, we'll call it a bundle of sticks. Have more questions? You know how to reach us!
Dave sat down with Entertainment Law Series to talk about this saying he learned in law school. 📝 Make sure to watch J.D. and Matt interview Dave below.
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It's a new year and if you're still on your resolution of learning more about the music business, then our Youtube page is the place to go.
Get our your notebooks and learn from Dave about everything from Sound Recording, Publishing, Types of Contracts and more. You’re ability to learn is just one click away 📝
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The Corporate Transparency Act (“CTA”) took effect January 1, 2024. The purpose of the CTA is to create a national database that will identify the owners and controlling parties of companies in the US as part of the increased effort to combat money-laundering, terrorism, and other financial crimes. The Financial Crimes Enforcement Network (“FinCEN”), which is a bureau of the US Treasury Department, is in charge of creating and maintaining the database. The database will not be a public record but will be available to certain government agencies. All reporting companies will be required to file reports with FinCEN disclosing certain information regarding the companies and the identities of the beneficial owners or managers of the companies.
Overview
Most small businesses in the US are required to report to FinCEN. The report must include basic identifying information about the business and its owners and managers. The information must be updated if it changes. There are deadlines for reporting and penalties for not reporting.
The keys to navigating these new reporting requirements are:
Whether an entity is a Reporting Company that must report to FinCEN (or whether that entity falls into one of the exceptions to the reporting requirements).
Who are the Beneficial Owners and Company Applicants whose information must be reported.
When reports are due to FinCEN.
Key CTA Terms
Reporting Company includes virtually any entity formed in the United States. However, the CTA creates numerous exceptions such as:
Public companies.
Larger companies (with a physical US location, > 20 employees, and > $5M in gross receipts/sales).
Companies in regulated industries (e.g., financial services, including certain investment companies, fund advisors, and pooled investment vehicles; insurance)
Tax-exempt entities.
Subsidiaries (e.g., portfolio companies) controlled or wholly owned by an exempt entity (depending on the specific exception utilized).
Entities that fall within one of these exceptions are not required to file CTA reports.
Beneficial Owner is defined as any individual who (i) owns 25% or more of a Reporting Company or (ii) exercises “substantial control” over a Reporting Company. Many senior executives, managers, directors, and officers, even if they do not own 25% of the Reporting Company, will be deemed Beneficial Owners under the CTA due to their control over a Reporting Company.
Company Applicant is an individual who directly files an entity’s formation documents with a relevant state or tribal authority or is primarily responsible for directing or controlling the filing.
Who will this affect?
The CTA will impact entities across the US and the individuals who own or control those entities.
Every corporation, limited liability company, and other legal entity formed in the US needs to determine whether it is a Reporting Company under the CTA or whether it qualifies for an exception.
Every entity that is a Reporting Company needs to identify its Beneficial Owners and Company Applicant(s).
All Reporting Companies and their Beneficial Owners must be reported to FinCEN.
Who information must be reported?
Company information that must be reported includes the company’s name, address, and tax identification number (e.g., EIN).
Beneficial Owner information that must be reported includes the individual’s legal name, address, and identification number from their passport, driver’s license, or certain other government-issued identification cards. Each Beneficial Owner must also upload an image of their passport, driver’s license, or other government-issued identification card.
What are the deadlines for CTA compliance?
Reporting Companies created before January 1, 2024, must file their initial Beneficial Ownership Information (BOI) report by January 1, 2025. Reporting Companies created before January 1, 2024, are not required to identify their Company Applicants.
Reporting Companies formed between January 1, 2024, and December 31, 2024, must file their initial BOI report with FinCEN within 90 days after receiving actual or public notice, whichever is earlier, of their company’s creation or registration.
Reporting Companies created on or after January 1, 2025, will have 30 days within which to make the required BOI report filing.
Updates: A Reporting Company must file an updated BOI report whenever there is a change in (i) its basic information, (ii) Beneficial Owners, or (iii) status as a Reporting Company (i.e., if the company becomes eligible for an exception). The updated report must be filed no later than 30 days after the change.
What are the potential consequences for non-compliance?
A willful failure to report complete or updated beneficial ownership information to FinCEN, or the willful provision of or attempt to provide false or fraudulent beneficial ownership information, may result in civil or criminal penalties, including civil penalties of up to $500 for each day that the violation continues, or criminal penalties, including imprisonment of up to two years and/or a fine of up to $10,000.
A person may be subject to civil and/or criminal penalties for willfully causing a Reporting Company not to file a required BOI report or to report incomplete or false beneficial ownership information.
How can we help?
As always, Creative Law Network is available to assist with your business needs, including answering any questions you may have about the new CTA. We are ready to assist with the filing of your initial BOI report and any updates. Please contact us so we can help ensure your business is compliant with this new law.
We hope this spooky season, you enjoyed movies and other fall / Halloween actives.
We know sometimes, contracts can be scary to look at, but that’s why you have us! We got you covered so you can continue to be a creative business. Email or call us today!
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This week our Client Spotlight features a Boulder based poet, Andrea Gibson!
Earlier this month, Governor Jared Polis named Gibson as Colorado's new poet laureate. As poet laureate, Gibson will take on a two-year role created to advocate for the arts and connect with the community.
Gibson role will include visits to schools, libraries and literary festivals across the state championing poetry, literacy and literature. Make sure to keep up with Gibson by following them on Instagram, subscribing to their substack, and visiting their store.
It is incredible to see our clients do things at this magnitude and we are so happy to watch Andrea Gibson during this journey!
Yeah, this is the part where the lawyer comes in - CONTRACTS!
Dave breaks down why contracts are so important for smooth sailing for you, your business, and whoever you're working with.
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Dave joined J.DD Houvener and Matt Kulseth of Bold Patents for their Entertainment Law Series.
Dave discusses his music background and his path to founding his own law firm. If you're a new lawyer or thinking about starting your own practice - he passes along some golden nuggets in this interview.
They discuss all sorts of stuff related to the practice of law, and the business of law. Watch the video below and give Bold Patent a follow! SUBSCRIBE TO THEIR YOUTUBE CHANNEL
Your Content or Mine?: Protecting Creative Content In The Marketplace
Every startup business deals with content. Think about your website, brochures, manuals, pitch-decks, packaging, blog, etc. – they all rely on creative content. That may be your own or someone else’s creative content. Regardless, it is all essential to your business growth and success. So how do you protect that content in the marketplace? How do you make sure people don’t steal or alter your content? How do you properly use other people’s content, like photographs or music? This presentation will cover the basics of copyright law and implications for the most common forms of content created or used by emerging businesses. Led by David Ratner with Creative Law Network, this workshop is organized by Colorado Attorneys for the Arts (CAFTA), a program of Colorado Business Committee for the Arts (CBCA).
Add to your schedule here to join us on Monday, September 18th!