Beginning January 1, 2024, new rules require some businesses to share ownership details with the U.S. government. This rule, called the Corporate Transparency Act (CTA), applies to companies filing reports with FinCEN, the Financial Crimes Enforcement Network. However, since the reporting form is not out yet, there’s no need to panic. FinCEN has simply shared guidance, with the latest update on December 12, 2023. Here’s a basic breakdown of the new reporting law:
Who Needs to Report? Reporting companies, which include corporations, LLCs, or entities created by filing with a Secretary of State, must report about their beneficial owners. Foreign companies registered to do business in the U.S. also fall under this rule. If your business was created before Jan. 1, 2024, you have a whole year to file. Reporting companies created after Jan. 1, 2024 will have 90 days.
