Navigating the Corporate Transparency Act: A Guide for Business Owners

Effective January 1, 2024, the Corporate Transparency Act (CTA) introduces major reporting changes for private U.S. companies. Enacted to combat money laundering, terrorism financing, and other financial crimes, the CTA increases ownership transparency requirements for corporations, LLCs, and other entities.

As a business owner, it is essential to understand your new obligations under the CTA. This synopsis summarizes key provisions based on FinCEN’s Small Entity Compliance Guide.

Key requirements include:

  • Reporting beneficial ownership information to FinCEN upon new entity formation, including owners’ names, DOBs, addresses, and ID numbers.
  • Updating reports within 30 days for any changes in beneficial ownership.
  • Registering with FinCEN to gain access for filing reports.
  • Ensuring compliance for existing entities within one year of implementation.
  • Failure to comply can result in civil and criminal penalties. While the CTA expands reporting, it does not supersede state filing requirements.

We encourage reviewing the complete FinCEN guidance and consulting legal counsel to ensure your business meets all CTA requirements. Proactive compliance will protect your company and limit any potential disruption from the new rules. Please reach out with any questions about how the CTA may impact your business.

John Zoraian John Zoraian is a Principal in Grassi’s Financial Services practice, where he provides expert fund administration, compliance and advisory services to hedge and private equity funds, funds of funds, master-feeders, investment advisors, broker-dealers, family offices, fintech entities and more. John draws from more than 35 years of experience in the hedge fund business. Prior to joining Grassi, he established S&Z Fund Services, a division... Read full bio

Categories: Advisory