What is the Corporate Transparency Act?
The Corporate Transparency Act (the “CTA”) was enacted by Congress on January 1, 2021 (31 USC 5301, et seq.). The stated purpose of the law is to address “the disclosure of corporate ownership and the prevention of money laundering and the financing of terrorism.” WHAT? So how does this relate to my Association? The CTA requires small corporations, limited liability companies, and companies created by filing a document with the State (“Reporting Company”) to disclose information about their beneficial owners. Beneficial owners are “any individual who, directly or indirectly:”
- Exercises substantial control over a corporation or limited liability company, or
- Own 25% or more of the interest in a corporation or limited liability company.