The future of corporate compliance is almost here: the Corporate Transparency Act.
Business attorneys Adam Beaudoin and Matthew Jones are breaking down the fundamentals in a comprehensive article for Business North Carolina's December issue. Here are a few highlights from the article titled "The Corporate Transparency Act: Your Questions, Answered":
What is the Corporate Transparency Act?
The Corporate Transparency Act was created to provide law enforcement with beneficial ownership information related to specific business entities to detect, prevent, and punish terrorism, money laundering, and other misconduct.
When does the Corporate Transparency Act take effect?
The Corporate Transparency Act will go into effect on January 1, 2024.
Reporting entities created before the end of 2023 will have until January 1, 2025, to file beneficial ownership information. For companies registered after January 1, 2024, the requirement for filing ownership information is 30 days after the proposed registration, but there are proposed regulations that would extend the reporting time to 90 days, with the 30-day reporting period not going into effect until January 1, 2025.
Which companies need to file beneficial owner information under the Corporate Transparency Act?
The Corporate Transparency Act applies to a variety of domestic reporting companies, including corporations, LLCs, LLPs, LLLPs, LPs, non-profit corporations, and business trusts, as well as any other entity that is created by the filing of a document with the Secretary of State or Native American tribe.
Any foreign company doing business in the US with a physical location in the US will also need to file ownership information under the Act.
To learn more about who is exempt, the cost of filing, who can access this information, and other details, click here to read the full article.