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Notice: Corporate Transparency Act Reporting to FinCEN

01/2/2024

On January 1, 2024, business entities such as corporations or LLCs formed or registered to do business under the laws of a United States jurisdiction will also be required to report to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”) information about individuals who are their “beneficial owners” (including “controlling persons”) and “company applicants” pursuant to the Corporate Transparency Act (“CTA”). Required disclosures may include the individual’s residence address and a copy of a passport or driver’s license; an LLC without its own tax identification number may need to disclose the Social Security number of a sole individual member or, if the sole member is a trust that does not have a separate tax ID, the Social Security number of the grantor of the trust. The purpose of the CTA is to assist FinCEN in identifying entities that may be involved in money laundering, terrorism, tax evasion, organized crime, or other illegal activities. The CTA has both civil and criminal penalties.

Reporting requirements began January 1, 2024, and are part of the formation process for newly formed business entities. For existing entities, compliance requirements will need to be determined and any required beneficial ownership reports filed by January 1, 2025. The CTA describes what information must be reported by the business entity, who are considered beneficial owners, and who are company applicants. The CTA provides various exemptions to the reporting requirements, making compliance with this complex law dependent on the circumstances of each business entity and its beneficial owners. Individuals and business entities should consult with counsel about the CTA and potential reporting requirements.

Read the detailed notice here

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Media Contact

Kaitlin Hart
Senior Communications Manager
702-474-2667
khart@lewisroca.com

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