Corporate Transparency Act/Beneficial Ownership Information

Beginning January 1, 2024, the CTA requires domestic and foreign “reporting companies” (that do not meet one of the 23 exemptions) to file a report with FinCEN containing information on (1) beneficial owners, (2) company applicants (only for entities created after January 1, 2024), and (3) the reporting company itself.

The Corporate Transparency Act (CTA) was signed into law on January 1, 2021, as part of ongoing efforts to combat money laundering and other illegal activities. “Bad actors” (those individuals who commit these types of crimes) often hide their identities behind corporations, limited liability companies (LLCs) and other business types. The Financial Crimes Enforcement Network (FinCEN) is the Department of Treasury bureau that will enforce the CTA. The CTA requires businesses to report beneficial ownership information to FinCEN, and it also requires FinCEN to develop a confidential and secure database to maintain the information.