Corporate Transparency Act: What Companies Need to Know

Summary

This article discusses the recently enacted Corporate Transparency Act (CTA), which imposes beneficial ownership reporting requirements on certain companies. While the CTA largely applies to foreign-owned shell companies, domestic companies should carefully review the CTA to ensure that they fall within one of the exceptions to the definition of reporting company. Reporting companies should be mindful of the various penalties associated with noncompliance or providing inaccurate or misleading information to the Financial Crimes Enforcement Network (FinCEN), and therefore must familiarize themselves with reporting obligations and requirements under the CTA.