FWW Alert: New Federal Corporate Transparency Act (CTA) Requires Reporting
The new federal Corporate Transparency Act ("CTA") requires most small businesses to report personal information about business owners to the federal government. The specific agency gathering the information is FinCEN, which is a special agency within the U.S. Department of the Treasury. This information is referred to as beneficial ownership information ("BOI"). Reporting entities include corporations, limited liability companies, and other entities created by state filings. Beneficial owners are those who own or control at least 25% of the company. The reporting law requires disclosure of personal information concerning most officers, directors, managers, and anyone who exercises substantial control over the business. Similarly, anyone who filed the document that created or registered the entity must also report. There are several exemptions – for example nonprofits, accounting firms, insurance companies, and any business with over twenty employees or over $5 million in annual revenue.
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