There is a new regulation under the federal Corporate Transparency Act (CTA) that, for the first time, will require disclosure of information about all corporations, limited liability companies and limited partnerships (unless exempt), as well as personal information about their beneficial owners and the persons who form those entities. This requirement is effective on January 1, 2024, for all such entities unless otherwise exempt by the regulation.
HunterMaclean can assist you in determining which of your entities are subject to this new regulation and which may be exempt. We can also assist you in making the necessary filings when required. Please contact one of your primary HunterMaclean attorneys, and that attorney can connect you to the appropriate Firm attorneys to assist you. For general questions about the CTA, contact us at [email protected].
Set forth below, in question and answer format, is a summary of the CTA regulation, the types of entities that are exempt, and the filing requirements. Further details and guides and can be found at FinCEN’s website, including the pages on Beneficial Ownership Information and Small Business Resources.
1. What is the CTA?
The CTA is a component of the Anti-Money Laundering Act of 2020. It was enacted to prevent money laundering, terrorist financing, and other illicit activities. The CTA is the most impactful piece of federal legislation affecting businesses since the U.S. Securities Laws from the 1930s.
2. When does the CTA take effect?
The CTA takes effect on January 1, 2024.
3. In a nutshell, what is required by the CTA?
The CTA requires businesses (mostly smaller, unregulated businesses) to disclose certain information to the federal government regarding the business and its owners. The CTA will apply to many businesses. It is estimated that 32.6 million entities will have to comply with the CTA in 2024.
4. How is the information disclosed?
Information will be disclosed on a report called the…
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