{"id":116834,"date":"2021-06-15T16:00:00","date_gmt":"2021-06-15T16:00:00","guid":{"rendered":"https:\/\/icrowdnewswire.com\/?p=2878002"},"modified":"2021-06-16T10:54:00","modified_gmt":"2021-06-16T10:54:00","slug":"corporate-transparency-act-will-you-need-to-register-your-business","status":"publish","type":"post","link":"https:\/\/ipsnews.net\/business\/2021\/06\/15\/corporate-transparency-act-will-you-need-to-register-your-business\/","title":{"rendered":"Corporate Transparency Act: Will You Need to Register Your Business?"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"webfeedsFeaturedVisual wp-post-image\" style=\"display: block; margin-bottom: 5px; clear: both; max-width: 100%;\" src=\"https:\/\/icrowdnewswire.com\/wp-content\/uploads\/2021\/06\/HunterMaclean_Formal_Logo_hor-hi-res-1.jpg\" alt=\"\" width=\"300\" height=\"65\" \/><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-2877973 alignnone\" src=\"https:\/\/icrowdnewswire.com\/wp-content\/uploads\/2021\/06\/Louann-Bronstein-1-1.jpg\" alt=\"\" width=\"275\" height=\"365\" \/><\/p>\n<p><em>by Louann Bronstein, HunterMaclean<\/em><\/p>\n<p>The Corporate Transparency Act (CTA) was enacted on January 1, 2021, as part of the National Defense Authorization Act for Fiscal Year 2021. However, the CTA will not become effective until the Department of Treasury enters its regulations, which must occur by January 1, 2022.<\/p>\n<p>The CTA is groundbreaking. It creates a national database to register corporations and limited liability companies. Though not specifically mentioned, limited partnerships likely will be required to register as well, on the basis that the CTA requires the registration of \u201cother entities created by filing a document with the secretary of state of the relevant state\u201d.<\/p>\n<p>The CTA\u2019s purpose is to target anonymous shell companies to address and prevent money laundering, terrorism funding, trafficking, tax evasion, and similar illegal activities. However, due to the business size component of the CTA, many legitimate small businesses will be required to register.<\/p>\n<p>With some exceptions for highly regulated industries, the CTA requires reporting by any corporation, limited liability company, or filing company unless it satisfies <u>all<\/u> the following:<\/p>\n<ul style=\"margin-left: 30px; padding-bottom: 12px; padding-top: 8px;\">\n<li style=\"line-height: 2.3em;\">Employs more than 20 full-time employees in the US; and<\/li>\n<li style=\"line-height: 2.3em;\">Filed in the previous year federal income tax returns demonstrating more than $5 million in gross receipts in the aggregate; and<\/li>\n<li style=\"line-height: 2.3em;\">Has an operating presence in the US.<\/li>\n<\/ul>\n<p>Many local and regional businesses will be required to file a report once the Treasury regulations are issued. Even though the business may have an office (or other operating presence) in the US, many small businesses will have fewer than 20 full-time employees or less than $5 million in gross receipts.<\/p>\n<p>There is no exception for existing entities. Further, unless clarified by the Treasury regulations, it appears that all newly formed corporations, limited liability companies, and filing companies will be required to register, because a new entity will not have filed a previous year federal tax return.<\/p>\n<p>Entities formed before the Treasury regulations are issued will have two years to file the report. The reporting requirement will be immediate for entities formed after the Treasury regulations are issued.<\/p>\n<p>The CTA requires that certain identifying information be reported for each \u201cbeneficial owner\u201d of a reporting company. A beneficial owner is any individual who, directly or indirectly:<\/p>\n<ul style=\"margin-left: 30px; padding-bottom: 12px; padding-top: 8px;\">\n<li style=\"line-height: 2.3em;\">Owns or controls 25% or more of the ownership interest of the entity; or<\/li>\n<li style=\"line-height: 2.3em;\">Exercises \u201csubstantial\u201d control over the entity; or<\/li>\n<li style=\"line-height: 2.3em;\">Receives \u201csubstantial\u201d economic benefits from the assets of the entity.<\/li>\n<\/ul>\n<p>\u201cSubstantial\u201d is not defined in the CTA. This is one of the ambiguities the Treasury regulations are expected to clarify.<\/p>\n<p>Each beneficial owner will be required to report identifying information, including:<\/p>\n<ul style=\"margin-left: 30px; padding-bottom: 12px; padding-top: 8px;\">\n<li style=\"line-height: 2.3em;\">name,<\/li>\n<li style=\"line-height: 2.3em;\">date of birth,<\/li>\n<li style=\"line-height: 2.3em;\">current business or residential street address, and<\/li>\n<li style=\"line-height: 2.3em;\">unique identifying number, such as a passport, driver\u2019s license, or state issued ID number.<\/li>\n<\/ul>\n<p>The CTA provides significant penalties for failing to file a report or providing false information. These penalties include monetary fines up to $10,000, two years in prison, or both.<\/p>\n<p>The CTA also provides safeguards to protect the disclosure of information in the database. The general public will not have access to the database, and the information will not be subject to the Freedom of Information Act. In support of the CTA\u2019s purpose, the information will be available to law enforcement agencies, federal agencies for national security, federal regulatory agencies (such as the IRS), and financial institutions, in each case following strict regulatory protocols.<\/p>\n<p><em>Louann Bronstein is a partner at HunterMaclean, where she serves as head of the corporate group and specializes in corporate law and mergers &amp; acquisitions. She can be reached at (912)236.0261 or <\/em><a href=\"mailto:lbronstein@huntermaclean.com\"><em>lbronstein@huntermaclean.com<\/em><\/a><\/p>\n<div><strong>See Campaign: <\/strong><a href=\"https:\/\/www.huntermaclean.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">https:\/\/www.huntermaclean.com\/<\/a><br \/>\n<b>Contact Information:<\/b><br \/>\nLouann Bronstein (912)236.0261 <a href=\"mailto:lbronstein@huntermaclean.com\">lbronstein@huntermaclean.com<\/a><\/p>\n<p><b>Tags:<\/b><br \/>\n, <a href=\"https:\/\/icrowdnewswire.com\/category\/menafn\/\" rel=\"category tag\">Menafn<\/a>, <a href=\"https:\/\/icrowdnewswire.com\/category\/ips\/\" rel=\"category tag\">IPS<\/a>, <a href=\"https:\/\/icrowdnewswire.com\/category\/reportedtimes\/\" rel=\"category tag\">Reportedtimes<\/a>, <a href=\"https:\/\/icrowdnewswire.com\/category\/google-news\/\" rel=\"category tag\">Google News<\/a>, <a href=\"https:\/\/icrowdnewswire.com\/category\/financial-content\/\" rel=\"category tag\">Financial Content<\/a>, <a href=\"https:\/\/icrowdnewswire.com\/category\/news-category\/icn-internal-distribution\/\" rel=\"category tag\">iCN Internal Distribution<\/a>, <a href=\"https:\/\/icrowdnewswire.com\/category\/news-category\/legal-newswire\/\" rel=\"category tag\">Legal Newswire<\/a>, <a href=\"https:\/\/icrowdnewswire.com\/category\/law-com-newswire\/corporate-transactions\/project-finance\/\" rel=\"category tag\">Project Finance<\/a>, <a href=\"https:\/\/icrowdnewswire.com\/category\/language\/english\/\" rel=\"category tag\">English<\/a><\/p>\n<p><img class=\"cwdfimg\" alt=\"image\" width=\"400\" height=\"300\" \/><\/div>\n<div>\n<h3>Contact Information:<\/h3>\n<p>Louann Bronstein<br \/>\n(912)236.0261<br \/>\n<a href=\"mailto:lbronstein@huntermaclean.com\">lbronstein@huntermaclean.com<\/a><\/p>\n<\/div>\n<p>The post <a rel=\"nofollow\" href=\"https:\/\/heymuse.com\/corporate-transparency-act-will-you-need-to-register-your-business\/\">Corporate Transparency Act: Will You Need to Register Your Business?<\/a> appeared first on <a rel=\"nofollow\" href=\"https:\/\/heymuse.com\">Financial Market Brief<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>by Louann Bronstein, HunterMaclean The Corporate Transparency Act (CTA) was enacted on January 1, 2021, as part of the National Defense Authorization Act for Fiscal Year 2021. However, the CTA will not become effective until the Department of Treasury enters its regulations, which must occur by January 1, 2022. The CTA is groundbreaking. It creates [&hellip;]<\/p>\n<p>The post <a rel=\"nofollow\" href=\"https:\/\/heymuse.com\/corporate-transparency-act-will-you-need-to-register-your-business\/\">Corporate Transparency Act: Will You Need to Register Your Business?<\/a> appeared first on <a rel=\"nofollow\" href=\"https:\/\/heymuse.com\/\">Financial Market Brief<\/a>.<\/p>\n<p> <a href=\"https:\/\/ipsnews.net\/business\/2021\/06\/15\/corporate-transparency-act-will-you-need-to-register-your-business\/\" class=\"more-link\">Continue Reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":291,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[],"class_list":["post-116834","post","type-post","status-publish","format-standard","hentry","category-press-release"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Corporate Transparency Act: Will You Need to Register Your Business? - Business<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ipsnews.net\/business\/2021\/06\/15\/corporate-transparency-act-will-you-need-to-register-your-business\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Corporate Transparency Act: Will You Need to Register Your Business? - Business\" \/>\n<meta property=\"og:description\" content=\"by Louann Bronstein, HunterMaclean The Corporate Transparency Act (CTA) was enacted on January 1, 2021, as part of the National Defense Authorization Act for Fiscal Year 2021. However, the CTA will not become effective until the Department of Treasury enters its regulations, which must occur by January 1, 2022. The CTA is groundbreaking. It creates [&hellip;] The post Corporate Transparency Act: Will You Need to Register Your Business? appeared first on Financial Market Brief. 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