The Corporate Transparency Act Takes Effect

Jay Taylor, Partner at Interleges member firm Anderson Kill, writes about the The Corporate Transparency Act-

“The Corporate Transparency Act – Public Law No.: 116-283 (the “CTA”) was enacted in 2021, but officially took effect January 1, 2024. The legislation is intended to help law enforcement combat the use of shell companies for terrorism funding, money laundering, tax fraud, and other financial crimes.

Key Points-

  • The Corporate Transparency Act, effective 1/1/24, requires that most small and medium U.S. businesses file certain identifying information with FinCEN.
     
  • The required report identifies individuals falling under the legislation’s definition of “Beneficial Owner.”  
     
  • Public companies, financial institutions, and businesses with more than 20 employees and $5 million in revenue are exempt from reporting under the legislation.

Read Jay’s full article here.