The penalties for non-compliance with the Corporate Transparency Act are severe, including daily civil fines of $500 that accumulate until the violation is corrected, potential additional fees, and criminal fines up to $10,000. Willful non-compliance or misreporting can lead to imprisonment for up to two years. Beyond financial and legal repercussions, non-compliance risks reputational damage, challenges in obtaining financing or licenses, and, in extreme cases, the dissolution of the company. These penalties underscore the importance of adherence to the CTA.