On January 1, 2024, the Corporate Transparency Act (CTA) went into effect. This new law requires virtually all U.S. businesses not already subject to federal ownership reporting requirements to report certain ownership information to the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN). Companies should now assess whether they are subject to the CTA’s reporting requirements or if one of the 23 exemptions to the CTA’s reporting obligations applies to their operations.

Entities formed prior to 2024 and subject to reporting requirements must submit Beneficial Owner Information Reports to FinCEN before January 1, 2025.

However, entities formed during 2024 and companies not otherwise exempt from the CTA must submit Beneficial Owner Information Reports within 90 days of formation. Meaning the clock is ticking on reporting obligations for companies that have already been formed this year.

Companies not exempt from CTA reporting requirements must determine who within the company falls under the definition of a “Beneficial Owner” and will be reported as such in the company’s Beneficial Owner Information Reports.

Scopelitis attorneys are available to assist businesses in complying with these new requirements. Contact Scopelitis’ Corporate Practice Group with questions.