Starting January 1, 2024, the Corporate Transparency Act (CTA) requires many entities formed or registered in the United States to report information to the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN). This includes detailed information about both the company itself and its beneficial owners. Entities that existed before January 1, 2024, have a grace period to report—until January 1, 2025—but must still do so. Newly formed entities must report within 90 days after registration and must also report information about certain individuals who helped form the company. Changes to previously reported information must be given to FinCEN within 30 days after they occur. There may be both civil and criminal penalties for failing to comply with the CTA.

You can find further background on the CTA here: www.millercanfield.com/cta

All told, the CTA effectuates a sea change to the entity formation and reporting regime in the United States. Determining which entities are reporting companies, whether an entity is exempted from the reporting requirements, and which individuals are beneficial owners can be complex. Neither this alert nor background information available on our website is legal advice about the CTA, nor does any existing engagement with our firm cover such work; but we have a team in place ready to assist.

If you would like guidance relating to the CTA or assistance forming or registering an entity, please contact your Miller Canfield attorney to discuss a specific engagement in this regard.

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