Reporting Requirements under the New Corporate Transparency Act
Perhaps you have heard that effective January 1, 2024 all United States organizations have a new reporting requirement created by the federal Corporate Transparency Act (“CTA”). The purpose of the CTA is to prevent owners from creating shell corporations to hide assets and launder money. It was enacted as part of the legislative response to stymie covert financing of terrorist operations. The CTA requires that “beneficial owners” of a corporate entity must be identified and that information is kept in a federal data base. All reporting entities must file a Beneficial Ownership Information (“BOI”) report with the United States Department …