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Corporate Transparency Act

The Corporate Transparency Act (the “CTA”) is in many respects the single largest change to the law of business organizations ever enacted. Prior to the CTA only a few business entities were required to report their ownership to government authorities. As of January 1, 2024, the CTA implements an expansive, integrated reporting mechanism applicable to almost every business in the country, requiring the collection of ownership and control information for submission to a federal database operated by the U.S. Department of Treasury’s Financial Crimes Enforcement Network (“FinCEN”).

The CTA is a rapidly evolving area of the law, with new FinCEN guidance impacting regulatory analysis and filing procedures being issued regularly. With that uncertainty as a background, the members of the SKO CTA Practice Group can assist in your compliance with the CTA.  Non-compliance with the CTA may result in severe penalties for the company and its officers, including fines of up to $500 per day for each infraction, civil penalties and even prison for non-compliance.

SKO’s Corporate Transparency Act Practice Group stands ready to address your questions, such as:

  • Is your company subject to the CTA’s reporting requirements?
  • What information about the company’s beneficial owners needs to be collected for submission to the FinCEN database?
  • What is a “FinCEN Identifier”, and how may your company and your beneficial owners utilize a FinCEN ID to restrict the distribution of highly personal identifying information required by the CTA?
  • How and when are updated reports required?
  • What language should be included in a company’s organizational documents to detail and ensure that the CTA’s requirements are satisfied?

Please reach out to your primary contact at SKO or a member of the CTA Practice Group to start the process of reviewing your compliance with the CTA.

Contact one of our CTA Attorneys today.

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Explore Further: Related News

June 12, 2024
The beneficial owner reporting requirements of the Corporate Transparency Act,1 by means of the “Reporting Regulations,”2 went into effect on January 1, 2024. As of that effective date the clock began to run on the requirement that almost every business in the country, whether formed before or after that date, file a report with the […]
March 4, 2024
On Friday, March 1, 2024, an Alabama federal district court issued its decision in National Small Business United v. Yellen, holding that the Corporate Transparency Act (the “CTA”) is unconstitutional. The plaintiffs argued that, in enacting the CTA, Congress exceeded the enumerated powers granted to it under the U.S. Constitution.  The federal government argued that […]
February 28, 2024
In a recent SKO Insider, we provided a quick introduction to the now-effective Corporate Transparency Act (“CTA”) and promised more information about this new law.  Before going into the CTA’s requirements, we have fielded many questions that come down to “Why the CTA?” So let’s get that out of the way. In recent years the […]