The Corporate Transparency Act (“CTA”) went into effect on January 1, 2024. The stated goal of the CTA is to enhance transparency in entity structures and their ownership for the government to track money laundering and tax evasion. The CTA requires that all entities formed through any Secretary of State, unless exempt, report information about its owners, directors, officers, managers, and the company itself.
If you own or work for a Corporation, LLC, or other registered entity, or intend to form one, you and your company are subject to the reporting requirements under the CTA, unless an exemption applies. For companies created on or before December 31, 2023, reporting must be completed by December 31, 2024. For companies created on or after January 1, 2024, reporting must be completed within 90 days of creation of the entity. Beginning on January 1, 2025, this reporting must be completed within 30 days of creation of the entity.
It is important that this matter is addressed in a timely manner, as the failure to accurately report can result in civil penalties (up to $500 per day) and criminal penalties of up to two years imprisonment.
We have worked diligently in preparing an internal plan to handle these reporting obligations for our clients. Get in touch with one of our Corporate Attorneys at 847-381-0011 or firstname.lastname@example.org so that we can discuss this matter with you further to determine your obligations.