by: Steven Land
The Corporate Transparency Act (the “CTA”), which went into effect on January 1, 2024, requires nearly all businesses that were formed prior to January 1, 2024 to disclose the identity of their individual beneficial owners to the Financial Crimes Enforcement Network, a bureau of the United States Department of the Treasury (“FinCEN”), before January 1, 2025. Additionally, the CTA requires nearly all businesses formed on or after January 1, 2024 to disclose the identity of their individual beneficial owners to FinCEN within 90 days of the business’s formation.
See our previous blog for more information on the CTA: Pulling Back the Curtains on Business Entities: The Corporate Transparency Act.
Despite being ruled unconstitutional by the United States District Court for the Northern District of Alabama on March 1, 2024, the CTA remains in effect, and business owners should be prepared to file the required disclosure under the CTA in a timely manner. Failure to timely and accurately file the required disclosure may result in severe penalties.
Please contact our Business and Tax Law Practice Group to ensure your business complies with the CTA.
Steven Land is an attorney in Cooper Levenson’s Business & Tax practice group in its Atlantic City office. He concentrates his practice on business transactions, mergers and acquisitions, tax matters, and estate planning and administration. Steven may be reached at (609) 572-7530 or via e-mail at sland@cooperlevenson.com.
