corporate transparency act Archives

By Anthony Diosdi Many states have marketed themselves as privacy havens to domestic and foreign business organizations over the years. Some of the states that have marketed themselves as privacy havens include Nevada, Wyoming, South Dakota, and Delaware. For years, entity owners could establish an entity in a privacy haven and the owners of the entity could remain anonymous. However, the days are numbered for privacy havens. Congress is requiring disclosure of entity ownership regardless of what individual state laws might say. Beginning in 2024, the Financial Crimes Enforcement Network (“FinCEN”) will require most businesses to file a statement detailing ownership information, which will be collected and stored by FinCEN. FinCEN (which is a bureau of the United States Department of the Treasury) will disclose entity ownership with law enforcement,…

By Anthony Diosdi The Corporate Transparency Act (“CTA”) was enacted on January 1, 2021, as part of the National Defense Authorization Act (“NDAA”). It effectively creates a national beneficial ownership registry. The CTA requires certain business entities to report beneficial owners and “applicants” to FinCEN. CTA is intended to strengthen anti-money laundering laws and countering terrorism financing. Section 6403(a)(b) of the CTA requires that, starting in 2022, newly formed U.S. corporations, limited liability companies, and certain other entities classified as a “reporting company” must report their beneficial ownership to Financial Crimes Enforcement Network of the U.S. Department of the Treasury (“FinCEN”) at the time of formation or registration. Pre-existing reporting companies (those formed before the effective date of the CTA regulations), likely will start reporting in 2024, two years after…

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An Introduction to the Corporate Transparency Act

The Corporate Transparency Act- A New FinCEN Filing Requirement With Significant Delinquency Penalties