Beginning
January 1, 2024, the Corporate Transparency Act (“CTA”) goes into
effect. Congress passed the CTA to enhance transparency in
business ownership for the stated purposes of combating money
laundering, foreign interference, fraud, and other illegal activities.
The basic requirement is for small corporations and
limited liability companies to report the following to the Financial
Crimes Enforcement Network (“FinCEN”):
- Full Legal Name of the Business Entity
- All Trade Names and Assumed Business Names
- Street Address of the Principal Place of Business
- Employer Identification Number
In addition, for each individual owner, a small
corporation or limited liability company must report the following to
FinCEN:
- Full Legal Name
- Date of Birth
- Residential Address
- ID Number from a Non-expired Passport or Driver License and a Copy of the Selected ID
There are a lot of details to these requirements including
filing deadlines for new companies, filing deadlines for existing
companies, exemptions, and definitions of covered companies and
individual owners. For more information, please refer to the
following links:
MRG intends this message as a courtesy notice to alert our
readers to this upcoming legal requirement which has penalties of up to
$500.00 per day for non-compliance. Please feel free to contact us
with questions regarding how these new rules might apply to your
individual circumstances.
