August 2023
At the beginning of 2021, Congress passed the Corporate Transparency Act (CTA) as part of a larger set of laws intended to prevent money laundering. The CTA requires many business entities formed under state law, such as corporations and limited liability companies (LLCs), to file reports about their “beneficial ownership” with the Treasury Department’s Financial Crimes Enforcement Network (FinCEN). Failure to meet the filing requirements can result in significant penalties. The CTA will take effect on January 1, 2024.
This article provides an overview of the reporting requirements for covered businesses.
