The Corporate Transparency Act: What business owners, directors and trustees need to know about their privacy
The US Corporate Transparency Act (CTA) is an addition to the Bank Secrecy Act that takes effect in January of 2024, and the goal of the CTA is to disclose beneficial ownership and control of companies. It requires a significant number of US businesses formed with secretaries of state to file reports with the US Department of Treasury's Financial Crimes Enforcement Network (FinCEN) from January 2024.
You may be impacted by the CTA
While many have noted the significance of the CTA for large public corporations, those individuals with ownership in limited liability corporations (LLCs), limited partnerships (LPs) and family limited partnerships (FLPs) should also all be aware of their reporting responsibilities under the CTA.
Owners of LLCs, LPs or FLPs, or individuals who exercise control as an individual, fiduciary, trustee, officer or director, will need to report personal and private information beginning January 2024.
Complex investment structures and your privacy
FinCEN has not yet published the reporting forms, and we don't know exactly what the reporting requirements will look like. Owners or 'controllers' of LLCs, LPs or FLPs may find that they have to disclose personal information in relation to companies they are invested in, and there are measures that can be taken to better protect your privacy.
Anyone with complex investment structures should work with their professional advisors to make sure their reporting is prepared properly and that they have considered all of the issues.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
