Understanding the Corporate Transparency Act: A Simple Guide

💼The Corporate Transparency Act aims to monitor businesses and prevent financial crimes.

📝All businesses, including LLCs, must report their beneficial owners to the US Department of the Treasury.

📆The filing deadline depends on the creation date of the company, with different reporting requirements.

🔒The information provided is not entirely private and can be accessed by government agencies and financial institutions.

🌐Filing can be done online through the Financial Crimes Enforcement Network (FinCEN) website.

What is the purpose of the Corporate Transparency Act?

—The act aims to monitor businesses, prevent financial crimes, and ensure transparency by requiring them to report their beneficial owners.

Who needs to file under the act?

—All businesses, including LLCs, created through the secretary of state or similar entities, need to report their beneficial owners.

When do I need to file?

—The filing deadline depends on the creation date of the company, with different reporting requirements.

Is the information reported private?

—While the information is supposed to be private, government agencies, financial institutions, and law enforcement can access it under certain circumstances.

How do I file?

—You can file online through the Financial Crimes Enforcement Network (FinCEN) website. Instructions and a PDF guide are available.

00:00In this video, Barbara Phillips discusses the Corporate Transparency Act and the requirement for businesses to report their beneficial owners.

06:38The act aims to monitor businesses, prevent financial crimes, and ensure transparency.

08:57Filing is simple and can be done online through the Financial Crimes Enforcement Network (FinCEN) website.

09:39The deadline for filing depends on the creation date of the company.

06:44Government agencies, financial institutions, and law enforcement can access the reported information.