 Corporate Transparency Act (CTA) i
Whether you are an owner of a large private business with cross-border operations or a simple LLC holding a family cottage, it’s likely that you are obligated to comply with new federal ownership disclosure rules by year-end—but have failed to do so.
Three-quarters of the 32 million private companies and pass-through entities that are required to file ownership information to the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) starting this year still haven’t done so, risking up to a $10,000 penalty or jail time for noncompliance.
The new rules, passed under the Corporate Transparency Act (CTA) in 2021, apply to people who have substantial control or at least a 25% stake in a business or pass-through entity that isn’t registered with a federal government agency such as the Securities and Exchange Commission.
This generally includes LLCs and private corporations such as S corporations and businesses that were created by filing documents with a state government, and foreign entities registered to do business in the U.S.
Public companies, nonprofits and private companies such as registered investment advisors (RIAs) that already file ownership information with the federal government have no CTA filing obligations.
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