The new compliance requirements under the Corporate Transparency Act (CTA) become effective on January 1, 2024. This federal law, enacted in 2021, aims to enhance transparency in corporate ownership and combat illegal activities such as money laundering and fraud. Madsen Beck is committed to guiding you through this new regulatory landscape.
What Does the CTA Entail?
The CTA requires all business entities in the U.S., regardless of their size, to register their “beneficial owners” with the Financial Crimes Enforcement Network (FinCEN). Our team at Madsen Beck is ready to support you through this registration process, ensuring your compliance with the law.
Who Needs to Comply?
The CTA applies to various entities, including corporations, LLCs, LLPs, and non-profit organizations, among others. While there are exemptions, such as for large operating companies and certain regulated industries, most small and medium-sized businesses will need to comply.
Reporting Requirements
Under the CTA, entities are required to disclose the following information:
- For Entities:
- Legal name
- Trade name
- Address
- Jurisdiction
- Tax Identification Number
- For Beneficial Owners:
- Full name
- Date of birth
- Residential address
- U.S. identification document details.
Once registered, any changes in beneficial ownership must be reported to FinCEN within 30 days.
How Madsen Beck Can Assist You
Madsen Beck has developed a streamlined process for CTA compliance, equipped with a dedicated team to handle all aspects of registration and ongoing updates. We understand the complexities involved and are prepared to ensure your business meets all CTA requirements efficiently.
The Importance of Compliance
Non-compliance with the CTA carries significant penalties, including substantial fines and the potential for criminal charges in severe cases. As legal advisors, we emphasize the importance of timely and accurate reporting under the CTA.
For any questions or to engage our services for CTA compliance, please contact us at (208) 321-6384 or info@madsenbeck.com.