Understanding the Corporate Transparency Act

Join us to learn about the new federal reporting requirement that went into effect on January 1 that will impact the vast majority of NC businesses. The Corporate Transparency Act (CTA) is designed to provide law enforcement agencies with the beneficial ownership information of each corporate entity in an attempt to detect money laundering, terrorism, and other crimes.

Applicability

The law applies to most business structures including Corporations, LLCs, LLPs, LPs, and Community Associations. Larger companies with over 20 employees and over $5M in sales are exempt, as are most 501(c) nonprofits, Sole Proprietorships, and other structures not registered with the state.

Requirements

A representative of each corporate entity is required to register with the US Treasury’s Financial Crimes Enforcement Network (FinCEN) and provide the company’s legal name, any trade names, Tax ID, and street address. “Beneficial owners” (those owning more than 25% or exercising substantial control) must provide their name, and DOB, and upload a valid ID.

Timeline

Existing companies, formed before January 1, 2024, have 1 year to register. New companies, formed after January 1, 2024, must register within 90 days. The registration process is straightforward and takes less than 30 minutes.