Corporate Transparency Act

Under the Corporate Transparency Act (the “CTA”), new beneficial ownership information (BOI) reporting requirements for U.S. companies went into effect on January 1, 2024. The CTA aims to reduce terrorist financing, money laundering, and other illicit activities by requiring corporations, limited liability companies, and other filing entities to register and disclose information relating to their owners, officers, and controlling persons with the Financial Crimes Enforcement Network (“FinCEN”).

Effective January 1, 2024, newly created entities that are considered a reporting company will be required to file their initial BOI reports within 90 days after formation. Reporting companies created prior to January 1, 2024, will have until January 1, 2025 to file their initial BOI reports with FinCEN. Reporting companies formed on or after Jan. 1, 2025, will have 30 days to file their initial BOI reports. On January 1, 2024, FinCEN began accepting BOI reports on its new BOI E-filing system.

Clark Hill has created a CTA Task Force and is monitoring updates regarding the CTA’s rules and regulations. Clark Hill will be offering more communication to address any questions and/or concerns. Please stay tuned for more CTA content as Clark Hill continues our efforts to provide information and support for CTA compliance.