What You Need to Know About the Corporate Transparency Act

✅The Corporate Transparency Act is a new reporting requirement for all entities doing business in the US, effective January 1, 2024.

🔍The act aims to provide more information to FinCEN to combat money laundering and track bad money.

📋Reporting companies must disclose information about themselves, including entity name, address, jurisdiction, and taxpayer identification number.

🔒Beneficial owners and company applicants must also be disclosed, including full legal names, dates of birth, residential addresses, and identification numbers.

⏰Advisors and entities have until January 1, 2024, to prepare for these reporting requirements and update their information with FinCEN.

Who is required to report under the Corporate Transparency Act?

—Every entity doing business in the United States is required to report under the Corporate Transparency Act.

What information needs to be disclosed by reporting companies?

—Reporting companies need to disclose information about themselves, their applicants, and their beneficial owners, including entity name, address, jurisdiction, taxpayer identification number, full legal names, dates of birth, residential addresses, and identification numbers.

What is the purpose of the Corporate Transparency Act?

—The Corporate Transparency Act aims to provide more information to the Financial Crimes Enforcement Network (FinCEN) to combat money laundering and track bad money.

When do the reporting requirements of the Corporate Transparency Act take effect?

—The reporting requirements of the Corporate Transparency Act take effect on January 1, 2024.

What happens if entities fail to comply with the reporting requirements?

—Entities that fail to comply with the reporting requirements may face financial penalties and other consequences.

00:00Congress added a new reporting requirement for every entity doing business in the United States.

01:48Reporting companies must disclose information about themselves, including entity name, address, jurisdiction, and taxpayer identification number.

10:57Beneficial owners and company applicants must also be disclosed, including full legal names, dates of birth, residential addresses, and identification numbers.

11:58Entities have until January 1, 2024, to prepare for these reporting requirements and update their information with FinCEN.