What You Need To Know About the Corporate Transparency Act (CTA) Going Into Effect January 1st, 2024.
The Corporate Transparency Act (CTA) goes into effect on January 1, 2024 and impacts many U.S. businesses as well as foreign businesses that are registered within the U.S. The CTA was created to combat financial crimes such as tax fraud and money laundering by capturing ownership information for entities operating within the U.S. The CTA requires companies to report beneficial ownership information (BOI) about who owns and controls them to the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN). Companies that are required to report are called “reporting companies” and include business entities such as corporations and limited liability companies. Reporting companies will be required to submit their beneficial ownership information electronically to FinCEN. Certain entities are exempt from the new reporting requirements, and a list of exempt entities can be found on FinCEN’s website (www.fincen.gov/boi). FinCEN will begin accepting reports on January 1, 2024. If your business entity was created or registered prior to January 1, 2024, you will have until January 1, 2025 to be compliant with the CTA. Business entities created or registered on or after January 1, 2024 must report within 30 days of creation or registration. Schedule a consultation with a CCG lawyer today to learn more about how the CTA impacts your business and for help with getting your business in compliance with the CTA.