The Corporate Transparency Act came into effect on January 1, 2024.
This new law requires business entities (including limited liability companies, some partnerships and corporations) to file a report with the Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”) identifying the "beneficial owners" (members, partners, shareholders, etc.) of the entity.
Entities in existence prior to January 1, 2024, have one year to file this report, while newer entities have ninety (90) days (recently increased from thirty (30) days) after formation to file. A change in the beneficial ownership of an entity or in the reported information will also have to be reported within thirty (30) days of the change.
While this law is being challenged on constitutional grounds, as it stands now, most business entities are still required to report.
