Corporate Transparency Act Goes Into Effect January 1, 2024: What You Need to Know
September 13, 2023
The new Corporate Transparency Act (CTA) requires reporting of company ownership information to the U.S. Financial Crimes Enforcement Network (FinCEN). The Act, which goes into effect January 1, 2024, applies to most business entities, including corporations, limited liability companies, and other entities formed by filing with a secretary of state or similar office, with a few exemptions.
Those entities subject to CTA are required to report detailed information about themselves and their beneficial owners. For each entity’s beneficial owners and each company applicant (if required to be reported), reporting companies will need to provide: (i) the individual’s legal name, (ii) the individual’s birthdate, (iii) the individual’s address (in most cases, a home address), and (iv) an identifying number from a driver’s license, passport, or other approved document, as well as an image of the relevant document. Reporting will be done online through a secure filing system known as BOSS (Beneficial Ownership Secure System) accessed via FinCEN’s website at https://www.fincen.gov/. The website will be available beginning on January 1, 2024.
Beneficial owners are individuals who, directly or indirectly, either (i) own or control 25% or more of the ownership interests in a reporting company or (ii) exercise “substantial control” over a reporting company.
For more information about the CTA and its FinCEN reporting requirements, please reach out your LP attorney or email our CTA Compliance Desk at CTAcompliance@lplegal.com.