The deadline for companies existing before 2024 have until the end of the year to get in compliance with their obligations under the Corporate Transparency Act.
The federal law, known as The Corporate Transparency Act, was enacted in 2021 and went into effect as of January 1, 2024. Many companies active in the United States are now required to report information disclosing the identity of the individuals that own and control the companies.
New companies have 90 days from the registration or creation date to file, while companies existing before January 1, 2024 have a deadline of January 1, 2025 to file their report.
“Reporting entities” include corporations, limited liability companies, and any other entity that is formed by filing a document with the secretary of state or other government office. There are certain entities that either do not fall under these categories, or are exempt from reporting.
A trust does not fall under the category of a “reporting entity”, however, if a trust is a shareholder of a corporation or a member of an LLC, there will be reporting requirements.
If you have business ownership, it is important to become familiar with this law and be sure that you are in compliance before the end of this year.