End of Year Corporate Transparency Act Update
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By now, you likely have seen, heard, or otherwise came across the Corporate Transparency Act (“CTA”) if you are a businessperson. Congress enacted the CTA several years ago, but the effective date of the Act was January 1, 2024, resulting in growing media coverage throughout the year. At a high level, the CTA requires “Reporting Companies” to report to FinCEN certain information about the Reporting Company and about the “Beneficial Owners” of the Reporting Company, and for companies created after January 1, 2024, also information regarding their “Company Applicant”.
The articles listed below have been previously published by Strauss Troy regarding the CTA:
Preparing for the Corporate Transparency Act - Part I: What is it?
Preparing for the Corporate Transparency Act – Part III: Who is Exempt?
Corporate Transparency Act Update
Understanding Corporate Transparency Act Compliance After Recent Court Rulings
Although there are 23 exemptions from the CTA, the vast, vast majority of businesses will be covered by the CTA. Many individuals and businesses have taken a “wait and see” approach with the CTA, to determine if it would pass legal muster prior to complying. Given that the CTA requires Reporting Companies who were in existence prior to January 1, 2024 to comply with the CTA’s initial reporting requirements prior to January 1, 2025 , the time is now for businesses who have not yet complied with the CTA’s initial reporting requirements to do so.
For more information on the CTA, including details on what qualifies as a Reporting Company, who is considered a Beneficial Owner, and the specific information required for each Reporting Company, please contact Austin Stevenson at RAStevenson@strausstroy.com or 513.768.9745. We are available to answer any questions and discuss how Strauss Troy can assist your Reporting Company with CTA compliance.
