Corporate Transparency Act Launches January 1, 2024

Beginning January 1, 2024, the Corporate Transparency Act (“CTA”) goes into effect.  Congress passed the CTA to enhance transparency in business ownership for the stated purposes of combating money laundering, foreign interference, fraud, and other illegal activities.

    The basic requirement is for small corporations and limited liability companies to report the following to the Financial Crimes Enforcement Network (“FinCEN”):

• Full Legal Name of the Business Entity

• All Trade Names and Assumed Business Names

• Street Address of the Principal Place of Business

• Employer Identification Number

    In addition, for each individual owner, a small corporation or limited liability company must report the following to FinCEN:

• Full Legal Name

• Date of Birth

• Residential Address

• ID Number from a Non-expired Passport or Driver License and a Copy of the Selected ID

   There are a lot of details to these requirements including filing deadlines for new companies, filing deadlines for existing companies, exemptions, and definitions of covered companies and individual owners.  For more information, please refer to the following links:

• FinCEN’s general webpage for the CTA

• FinCEN’s Small Entity Compliance Guide

• FAQ prepared by FinCEN

   MRG intends this message as a courtesy notice to alert our readers to this upcoming legal requirement which has penalties of up to $500.00 per day for non-compliance.  Please feel free to contact us with questions regarding how these new rules might apply to your individual circumstances.