Are you ready for the Corporate Transparency Act (CTA)?

What is it?

The Corporate Transparency Act (CTA) is intended to provide law enforcement with beneficial ownership information for the purpose of detecting, preventing, and punishing terrorism, money laundering and other misconduct through business entities. This report will require information about the Business Entity, information for each of the Beneficial Owners of the company (any individual who has substantial direct or indirect control of the reporting company or who owns at least 25% of the ownership interests) as well as Company Applicants (the person or people filing on behalf of the entity).

What we know:

Effective January 1^st, 2024, every existing, amended, or new corporation, LLC or other entity registered through any state’s Secretary of State, including foreign entities doing business in a state MUST FILE specific reports with the Financial Crimes Enforcement Network (FinCEN).

Timeline:  We are on top of this, and we are studying the code each week for updates to the timeline.  There are no action items needed at this time, watch for more information from K&R next month!

Your success is our priority:

We are committed to going above and beyond to ensure your entities are compliant with the CTA. We value your time, and we believe the peace of mind we can offer through our continued education and diligence for compliance is invaluable.

For K&R to assist you with this federally mandated filing, we will need a commitment for the following:

1. All information must be provided promptly.

• • There is very specific information that will be collected in order to successfully complete the reporting. Very shortly we will be sending in greater detail the exact documentation required for the entities, beneficial owners, and substantial control members. As a firm we have set a hard deadline of September 30th, 2024, for all submittal information. Our services may not be available after this date.

1. All Business Entities disclosed.

• • We require that all entities are disclosed whether K&R has knowledge or record of them or not. Even if you are unsure of the filing requirements, we require all entities of record.

To see a PDF version of this blog post, follow the link below:

CORPORATE TRANSPARENCY ACT OF 2019