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Corporate Transparency Act

Corporate Transparency Act

The Corporate Transparency Act was enacted as an expansion of federal anti-money laundering laws and became effective on January 1, 2024.

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What It Means for Your Business

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The Corporate Transparency Act (CTA) introduces reporting requirements for new and existing companies formed or registered in the U.S., including corporations, partnerships, and limited liability companies.

Unless an exemption applies, these companies are required to report beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN), a branch of the U.S. Department of the Treasury.

The CTA authorizes FinCEN to collect this information and disclose it to authorized government authorities and financial institutions to help prevent money laundering, terrorist financing, corruption, tax fraud, and other illicit activity.
 

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The Corporate Transparency Act at a Glance

In discussing the CTA, the following definitions are important:

  • Reporting Company
    A corporation, partnership, LLC, or any other similar entity organized under state law, or a foreign entity formed under the laws of a foreign country and registered to do business in the United States.
     
  • Beneficial Owner
    Any individual who (1) directly or indirectly exercises substantial control over a reporting company, or (2) directly or indirectly owns or controls 25 percent or more of the ownership interests of a reporting company.
     
  • Company Applicant
    An individual who either directly files the document that creates or first registers the reporting company, and/or who is primarily responsible for directing or controlling the filing of the relevant document. There can be up to two company applicants per reporting company. If only one person was involved in filing the relevant document, then only that person should be reported as a company applicant.

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Services We Offer

Our attorneys can assist clients with the following aspects of Corporate Transparency Act compliance:

  • Helping determine whether a company is a reporting company or exempt
  • Providing company applicant information to our clients
  • Assisting in determining a company's current beneficial ownership
  • Making introductions to third parties who can help with CTA-related filings

Compliance with CTA is the responsibility of the reporting company. Our client work does not include CTA-related advice unless we expressly agree to provide it. In addition, there are some aspects of CTA-related compliance that we cannot undertake, including filing reports with FinCEN or collecting personally identifiable information about the reporting company, beneficial owners, or company applicants.

Exemptions Apply

Exemptions Apply

The Corporate Transparency Act doesn't apply to all. Learn if you qualify for an exemption.

View Exemptions

How to File

How to File

If a company is required to report its beneficial ownership information, it will do so electronically through FinCEN.

Start Filing

Additional Resources

Further details regarding Beneficial Ownership Information can be found at FinCEN.gov.

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