Overview
What is the Corporate Transparency Act?
The Corporate Transparency Act, or the CTA, went into effect on January 1, 2024. A key goal of the CTA is to provide regulators and law enforcement additional tools to address financial crimes by creating a centralized database of the ownership interests of businesses operating in the U.S. The CTA mandates that the majority of businesses formed or operating within the U.S. must provide the federal government with details regarding their beneficial owners, meaning the individuals who either own or exercise substantial control over said business.
How does it impact my business?
Entities formed prior to January 1, 2024 must report beneficial ownership information to the Financial Crimes Enforcement Network, or FinCEN, by January 1, 2025, unless exempt from these regulations.
Entities formed on or after January 1, 2024 must report beneficial ownership information and the names of the persons who helped create the entity shortly after formation.
There are 23 possible exemptions, but most of these are narrowly tailored to target larger companies or highly regulated industries with existing federal reporting requirements. For more information on the exemptions, please refer to our Resources below.
We can help you answer important questions…
— What is the scope of my company's reporting obligation? Can my company qualify for an exemption?
— What should my company report to FinCEN?
— Are there strategies to minimize my company's reporting burdens?
— How does my company manage ongoing reporting obligations?
Need more information?
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Our CTA Resource Library is designed to keep you in the know. Download our relevant materials below. |
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Honigman’s CTA Task Force is ready to help you understand your compliance obligations. Join our mailing list to learn more about the CTA as the landscape evolves.
For more information, contact our CTA specialists Angela Gamalski and Brandy Bruyere, or your Honigman attorney.
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| Brandy Bruyere | Angela Gamalski |
