Corporate Transparency Act for Corporations Created On or After January 1, 2024

The Corporate Transparency Act (CTA) is scheduled to take effect on January 1, 2024. The CTA requires that certain companies, referred to as “reporting companies,” report certain information to the U.S. Department of the Treasury. Both domestic and foreign companies may be considered reporting companies. A domestic reporting company is a corporation, limited liability company, or other entity created by the filing of documents with the secretary of state or similar office under state or tribal law. A foreign reporting company is a corporation, limited liability company, or other entity formed under the law of a foreign country and registered to do business in any US state or tribal jurisdiction by the filing of documents with the secretary of state or similar office under state or tribal law. Reporting requirements will depend on when the reporting company was created or registered. Reporting companies created or registered on or after January 1, 2024, are required to report their beneficial owners and their company applicants. Beneficial owners are those individuals who exercise substantial control over the company or who directly or indirectly own or control at least 25% of the company. Senior officers are deemed to have substantial control over a company. There can be up to 2 company applicants. These are the individual who directly files the documents that create or first register the reporting company and the individual that is primarily responsible for directing or controlling the filing of the documents.