On January 1, 2024, the new federal Corporate Transparency Act (CTA) will take effect. The CTA is a new federal initiative to limit money laundering. It will require most companies and their beneficial owners to register with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN).
The CTA requires FinCEN to collect and maintain a federal database for “beneficial ownership information” (BOI). All entities that are formed or registered to do business in the United States by the filing of a document with a secretary of state or similar office (e.g., corporations, limited liability companies, and limited liability partnerships, but usually not trusts) will need to register on the BOI database unless an exemption applies.
All existing entities have until the end of 2024 to submit a BOI report to FinCEN. For entities formed in 2024, the initial report must be filed within 90 days of entity formation. Learn more here.