Frequently Asked Questions (FAQs) About the Corporate Transparency Act

By Banking and Financial Services, Business, Corporate Transparency Act Resource Center, Software & Startups

This article answers common questions that companies and individuals have about the Corporate Transparency Act (“CTA”). Please note: these answers are general and may not apply to you. Please consult an attorney for advice regarding the CTA and how it may apply to you or your company.

The law and best practices relating to the CTA change frequently, and portions of this page may be outdated at the time that you read it. Read More

How Investors Should Prepare for the Corporate Transparency Act

By Business, Corporate Transparency Act Resource Center

Investors in privately held companies face new legal considerations due to the Corporate Transparency Act (CTA), a new federal law taking effect January 1, 2024. This article recommends approaches that investors can use to protect their investments as well as their portfolio companies. These investors include angel investors, participants in friends-and-family rounds and others. Read More

Corporate Transparency Act Imposes New Federal Reporting Requirements on Most U.S. Companies

By Corporate Transparency Act Resource Center

Beginning in January 2024, most privately-owned companies formed or registered in the United States must start reporting the names of their “Beneficial Owners” to the U.S. Treasury Department. This reporting requirement is imposed by the Corporate Transparency Act (“CTA”), a 2020 federal law, and the Treasury Department expects it to apply to more than 32 million U.S. companies in its first year.[1] The CTA is part of the federal government’s fight against money laundering, which often entails the rapid formation of U.S. shell companies and the transfer of illegal funds between them. Read More

The Corporate Transparency Act: An Overview for Financial Institutions

By Corporate Transparency Act Resource Center

This article surveys the implications of a new federal statute, the Corporate Transparency Act (“CTA”), for financial institutions and their business customers. The CTA will soon require most private companies in the United States to report the names of their beneficial owners to the Financial Crimes Enforcement Network (“FinCEN”), a division of the U.S. Treasury Department. This new structure will supplement the reporting that banks and other financial institutions currently do under FinCEN’s Customer Due Diligence Rule (“CDD Rule”). Read More