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 before January 1, 2024, are required to report their beneficial owners. 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.
A reporting company will have to report the following: (1) legal and trade name or DBA, (2) address, (3) the jurisdiction in which it was formed or first registered, and (4) taxpayer identification number (TIN). For each beneficial owner, the reporting company will provide the individual’s (1) legal name, (2) birthdate, (3) address, and (4) an identifying number from a driver’s license, passport, or other approved document, as well as an image of the document.
Reporting companies created or registered before January 1, 2024, will have until January 1, 2025, to complete this report. The reporting company will have 30 days to report any changes or inaccuracies.
If you would like to talk to an attorney or need assistance complying with your company’s reporting requirements, contact Attorney Evelyn J. Pabon Figueroa at (407) 647-7887 or epabonfigueroa@pcc.law.
