Corporate transparency act

The Financial Crimes Enforcement Network (FinCEN) has initiated the collection of beneficial ownership reports pursuant to the Corporate Transparency Act (CTA). This legislation applies to most entities registered in the United States, including corporations, limited liability companies (LLCs), or registered trusts or foundations. It imposes the obligation to provide information about individuals who ultimately own or control such entities.

Companies created or registered after January 1, 2024, must submit a report on beneficial ownership within the first 90 days of incorporation, while existing ones have until January 1, 2025, to comply with this obligation.

The report is to be filed once, unless updates or corrections are necessary. It requests personal data from each owner, such as name, address, and date of birth. Additionally, companies must disclose relevant information about themselves, including their name and address.

For companies created after January 1, 2024, additional details about the founders of the company must also be provided.

The beneficial ownership reports are a mechanism aimed at reinforcing corporate transparency and addressing opaque financial practices.