Corporate Transparency Act: Reporting Essentials for Business Entities and Trusts

If you’re a business owner of a registered entity such as a corporation, partnership, or LLC, or the trustee or beneficiary of a trust that owns such an entity, you may be subject to a reporting obligation under the Corporate Transparency Act (CTA) that was enacted on January 1, 2021. By mandating the disclosure of beneficial ownership information, the CTA seeks to enhance transparency and accountability while curbing illicit activities such as money laundering, terrorist financing, and tax fraud.

This article provides a summary of the purpose of the CTA, the entities subject to its filing requirements, regulatory compliance deadlines, and practical steps for business owners to adhere to the law.