What Is The Corporate Transparency Act?

Enacted by Congress on January 1, 2021, the Corporate Transparency Act (“CTA”) was created for the purpose of bringing the United States into compliance with international AML/CFT Standards by establishing a new framework for the reporting, maintenance, and disclosure of beneficial ownership. The CTA sets a clear federal standard for incorporation practices, protecting vital U.S. national security interests as well as interstate and foreign commerce.

The CTA is designed to provide essential information to the following agencies:

National Security
National Intelligence
Law Enforcement Agencies

State, Local and Tribal Officials
Financial Institutions

File BOIR

The Beneficial Ownership Information Report ("BOIR") application process is done in the following order and can be submitted simultaneously

1 Determine if your company qualifies as a "Reporting Company"
2 Set up the Reporting Company with FinCEN
3 Report Beneficial Owners of the Reporting Company
4 Report Company Applicants if the company was formed after January 1st, 2024.

FinCEN provides filers with the option to create and submit the BOIR in two ways:

By preparing a downloadable PDF for record-keeping purposes

By directly filing online and receiving a transcript after submission.

Key Dates

October 23th,
2019

Congress introduces the Corporate Transparency Act of 2019 Introduction of the Corporate Transparency Act of 2019

January 1st,
2021

Congress passes the Corporate Transparency Act on a bipartisan basis.

September 18th,
2023

FinCEN releases Small Entity Compliance Guide and FAQ document.

September 30th,
2023

The Reporting Rule implements Section 6403 of the Corporate Transparency Act. The rule describes who must file BOI reports, what information they must provide, and when they must file reports.

January 1st,
2024

Reports will be accepted starting on January 1, 2024

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CTA Requirements

What the CTA involves

The Corporate Transparency Act was passed to enhance transparency in entity structures and ownership to combat money laundering, tax fraud, and other illicit activities. Click the links below for more details.

Fact Sheet (Details on Authorized Recipients, FinCEN Identifiers etc.) Laws (Click here to view details on the Act and BOI requirements) Final Rules (Click here to view BOI Reporting requirements final rules)

FAQs

The following questions are directed at and answered by FinCEN. The answers provided by FinCEN do not supplement or modify any obligations imposed by statute or regulation.

What is beneficial ownership information? Why do companies have to report BOI to the U.S Department of the Treasury? Under the CTA, who can access beneficial ownership information? When do I need to report my company’s BOI to FinCEN?