If you’re an owner of, or an investor in, a small business corporation, LLC, partnership, or other legal entity in the U.S. (or plan to be one after the beginning of the new year)
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Corporate Transparency Act - 2024
If you’re an owner of, or an investor in, a small business corporation, LLC, partnership, or other legal entity in the U.S. (or plan to be one after the beginning of the new year), you need to be aware of a new law that takes effect on January 1st of 2024, the Corporate Transparency Act (“CTA”). The CTA was enacted with a goal of enhancing transparency in U.S. entities and their owners in an effort to combat money laundering, tax fraud, and other illicit activities (think, terrorism). The CTA specifically targets small business and privately held companies. So, why should you care? Failure to comply with the reporting obligations can result in significant criminal and civil penalties.
Under the CTA, most U.S. privately-held legal entities will be required to report to the federal government identifying information about the individuals who directly or indirectly (for example, through one or series of holding companies) own or control the entity. That said, many small businesses and privately-held corporations, limited partnerships, and LLCs, including those established for tax or estate planning purposes, will be exempt from this reporting requirement.
We recommend each owner of, or investor in, a small business or other privately-held U.S. entity reach out to us to discuss your compliance obligations as soon as possible in order to determine whether you fall within the scope of the CTA and, if so, make sure your meet the filing deadlines under the CTA.
As we draw near to the end of 2023 and the holiday season, we want to take this opportunity to remind you that now is a great time to conduct an inventory of existing agreements
We’re proud to announce that our firm recently celebrated its second anniversary! Like so