Ten Things to Know About the Corporate Transparency Act

Congress enacted the Corporate Transparency Act (“CTA”) as part of the 2021 National Defense Authorization Act. The purpose of the CTA is to create a database of Beneficial Ownership Information (“BOI”) maintained by the federal government. The purpose is to aid the government in combating illicit finance schemes and the abuse of shell and front companies by criminals and corrupt officials.

The CTA requires that information regarding certain types of companies and their beneficial owners be filed with the Financial Crimes Enforcement Network (“FinCEN”), a branch of the Department of Treasury.

I recently authored an article for Upsize magazine about the CTA, entitled Ten Things to Know About the Corporate Transparency Act. You can read my article here.

Also, while a Federal District Court in Alabama recently ruled that the CTA was unconstitutional, most experts and attorneys – including myself – do not expect that ruling to hold, meaning that business owners need to be aware of the CTA filing requirements applicable to them.