Congress passed the Corporate Transparency Act (CTA) to capture more information about the ownership of specific business entities operating in the United States. The CTA accomplishes this by requesting business entities that are deemed “reporting companies” to provide “beneficial ownership information” to the Financial Crimes Enforcement Network (FinCEN).
Starting January 1, 2024, existing business entities that are required to report under the CTA have one year to make the initial report to FinCEN. Any business entity formed on or after January 1, 2024 must register within 90 days of formation.
Q: Is my company required to make a report to FinCEN under the CTA?
Below is a chart to help you learn if your company will need to file a report. For more information, you can access the Small Entity Compliance Guide on the FinCEN website or talk to one of LDM’s business attorneys.
Q: What information is my company required to report?
Business entities who need to file a report need to submit:
- The business entity’s legal name
- Trade names
- Current address
- Jurisdiction of formation
- Taxpayer identification number
The business entity must also report information about its beneficial owners. Beneficial owners either:
(1) Own or control at least 25% of the business entity’s ownership interests
(2) Exercises substantial control over the business entity (e.g., an officer or manager)
Each beneficial owner must provide their:
- Full legal name
- Date of birth
- Current address
- Unique identifying number from a passport, state or local ID, or driver’s license
- Image of the document where the unique identifying number can be found
Q: Can LDM help me become compliant with the Corporate Transparency Act?
Yes. LDM is prepared to report the necessary information on your business entity’s behalf if you would like to utilize this service. LDM can securely receive the required information from your business entity’s beneficial owners and prepare the report. Alternatively, a beneficial owner can submit their personal information directly to FinCEN and receive a FinCEN ID number that LDM can use on the business entity’s report.
Please reach out to one of LDM’s business attorneys if you would like to discuss your business entity’s obligations under the Corporate Transparency Act.