The Corporate Transparency Act ("CTA"), which takes
effect on January 1, 2024, will create reporting obligations for
most small businesses in the United States.1 The CTA is
designed to capture more information about the ownership of
specific entities operating in or accessing the U.S. market, with
the goal of enhancing transparency in entity structures and
ownership to combat money laundering, tax fraud, and other illicit
activities.2
Under the CTA, applicable entities, known as "reporting
companies," will be required to file information with the
Financial Crimes Enforcement Network ("FinCEN"), a
division of the U.S. Department of the Treasury. The CTA broadly
defines a reporting company as any corporation, limited liability
company, or other similar entity created by filing a document with
the secretary of state or similar office in any state or territory
with a federally recognized Indian Tribe, or formed under the laws
of a foreign country and registered to do
