Stay Alert for Updates in the News on the Corporate Transparency Act (CTA)
The Corporate Transparency Act (CTA) is a federal law that went into effect in 2024 to prevent illegal financial activities by increasing transparency in business ownership. The CTA requires most corporations and LLCs to disclose information to the Financial Crimes Enforcement Network (FinCEN), a bureau within the United States Department of the Treasury, about their “beneficial owners”, meaning anyone who, directly or indirectly, owns 25% or more of the company or who exercises significant control over it.
The original deadline for compliance with this new requirement had been 12/31/24, but in a series of developments last month, a nationwide preliminary injunction blocking government enforcement of the CTA was issued, stayed, and reinstated. Then, on January 23, 2025, the United States Supreme Court issued a stay of the nationwide preliminary injunction. Although the lifting of the injunction means that FinCEN may once again begin to enforce the CTA, the FinCEN website states that reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.
Since this is a rapidly changing situation, we urge you to continue to stay alert for further updates on reporting requirements and applicable deadlines on the FinCEN website.
If you have questions or need help, you can watch our video at https://www.youtube.com/watch?v=SP7ahtx_reM or schedule a Zoom call with a WBDC advisor.