The Corporate Transparency Act (CTA) took effect Jan. 1, mandating certain filing requirements for companies with the U.S. Department of the Treasury’s Financial Crimes Enforcement Network and applying to most companies. The CTA requires filings for existing companies by Jan. 1, 2025. New entities created after Jan. 1, 2024, must file within 90 days of their date of formation. We’ve gathered articles on the news from trusted outlets.

Registry Created

The CTA creates a national company beneficial ownership registry accessible only by law enforcement, government agencies and other officials. The purpose of the act is to prevent the illicit use of shell companies to conceal illegal activity or to facilitate money laundering, tax evasion and other criminal activities.

(JD Supra)

Who Must Be Mentioned in Report?

People holding substantial control of a company must be mentioned in the report. This may include:

• Managers or officers of the reporting entity.
• Directors of the reporting entity.
• An individual with authority over the appointment of any senior office or the majority of the board of directors.

(Kiplinger)

Requirement’s Effect on Lawyers, Trustees and Accountants

The CTA creates a federal disclosure requirement mandating that lawyers, trustees and accountants declare their association with the entities they create and understand their true owners. The CTA stipulates that individuals who create new entities be reported to the government as “company applicants.” This...

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