The Corporate Transparency Act (CTA), was signed into law in January 2021. This new law is a substantial change in US federal requirements regarding business entity disclosure.
The CTA was created to combat illicit activities and enhance transparency, but unfortunately it imposes reporting obligations on many businesses.
The CTA focuses on “reporting companies,” which includes most corporations, limited liability companies (LLCs), and similar entities.
Certain entities are exempt, including publicly traded companies, larger companies with over 20 employees and a physical U.S. office, and entities that have existed for over a year without changing ownership or sending/receiving funds.