The Corporate Transparency Act

The Corporate Transparency Act (CTA) is a federal statute effective as of January 1, 2024 that requires that qualifying entities disclose certain identifying information, both about themselves and about their beneficial owners, to the Financial Crimes Enforcement Network of the Department of the Treasury (FinCEN). The purpose of the CTA is the prevention of fraud and other financial crimes.

What Entities are Subject to the CTA?

Generally, entities formed in the United States, including corporations, limited liability companies (LLCs), limited liability partnerships (LLPs), and limited partnerships (LPs), are subject to the CTA. Furthermore, entities formed in foreign countries, but registered to do business the U.S., are also subject to the CTA. However, the CTA does not apply to entities that qualify under any of the 23 statutory exemptions.¹