{"id":2720,"date":"2023-12-15T18:39:20","date_gmt":"2023-12-15T18:39:20","guid":{"rendered":"https:\/\/acmmconsulting.com\/?p=2720"},"modified":"2025-05-31T21:12:04","modified_gmt":"2025-05-31T21:12:04","slug":"implementation-of-the-corporate-transparency-act-cta-everything-you-need-to-know","status":"publish","type":"post","link":"https:\/\/acmmconsulting.com\/en\/implementation-of-the-corporate-transparency-act-cta-everything-you-need-to-know\/","title":{"rendered":"Implementation of the Corporate Transparency Act (CTA): Everything You Need to Know"},"content":{"rendered":"

In a significant step towards corporate transparency, the Corporate Transparency Act (CTA) has been enacted into law as part of the National Defense Authorization Act for Fiscal Year 2021. This new regulation aims to combat money laundering, terrorism financing, and other illicit activities by requiring the disclosure of information about the Beneficial Ownership information (BOI) of certain entities. As we approach the implementation period, it is crucial to understand the key aspects of this legislation.<\/p>\n

Who Must Comply with the BOI Reporting Requirement?<\/h3>\n

Both entities organized in the U.S. and abroad may be subject to CTA reporting requirements. This includes corporations, limited liability companies (LLCs), and similar entities. However, some entities are exempt, such as publicly traded companies, banks, credit unions, and certain inactive entities, among others.<\/p>\n

Who is Considered a Beneficial Owner?<\/h3>\n

The beneficial owner is any individual who exercises “substantial control” over a reporting entity or owns\/controls at least 25 percent of the ownership interests in such entity.<\/p>\n

Are There Exemptions from Reporting Requirements?<\/h3>\n

There are 23 categories of exemptions that apply to certain entities, including publicly traded companies, banks, credit unions, securities brokers\/dealers, public accounting firms, and certain inactive entities, among others. It is important to note that these exemptions are not universal, and many of these entities are already heavily regulated by the government, disclosing their BOI information to a government authority.<\/p>\n

Additionally, certain “large operating entities” are exempt from filing the declaration. To qualify for this exemption, the company must:<\/p>\n

a) Employ more than 20 people in the U.S.; b) Have reported gross income (or sales) of more than $5 million in the previous year’s tax return; and c) Be physically present in the U.S.<\/p>\n

Filing Deadlines and Types of Required Information<\/h3>\n

Filing deadlines vary based on the entity’s creation\/registration date:<\/p>\n