The Corporate Transparency Act (CTA) introduces new reporting requirements aimed at enhancing corporate transparency and preventing the illicit use of anonymous shell companies for money laundering, terrorism financing, and other illicit activities.
Key provisions of the Corporate Transparency Act include:
- Beneficial Ownership Reporting: The Act requires most corporations, limited liability companies (LLCs), and similar entities to report information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury.
- Definition of Beneficial Owner: The Act defines a beneficial owner as an individual who directly or indirectly owns or controls 25% or more of the ownership interests of the entity, or exercises substantial control over the entity.
- Filing Requirements: Entities subject to the reporting requirements are required to submit beneficial ownership information to FinCEN, including the individual’s name, date of birth, address, and a unique identification number.
The Corporate Transparency Act is primarily focused on addressing issues related to money laundering, financial crimes, and national security concerns. The reporting requirements are not intended to burden small businesses or entities engaged in legitimate business activities.
Beware!! If you don’t report you can be subject to a civil penalty of $500 every day the violation continues and criminal penalties of up to $10,000 and two years in prison.
Call Kelli at (615) 567-7300 or email her at firstname.lastname@example.org for help in filing.