By Gene Marks | The Hill
Have you heard of the Corporate Transparency Act? Apparently, it’s freaking people out.
The law was passed as part of the National Defense Authorization Act back in 2021 — before President Biden even took office. Its intention is to root out potential bad actors and terrorists who own corporate entities in the U.S.
In order to comply with the act, existing businesses and startups are required to report their “beneficial owners” (those that generally either own a significant number of shares or exert significant influence over the operations) of the entity to the Financial Crimes Enforcement Network by the end of this year. Failure to report could result in fines of as much as $10,000.
“While there’s still time to complete the filing, business owners are best served by starting the process sooner rather than later.” –Shruti Gurudanti, Rose Law Group partner and director of corporate transactions
Gurudanti and Rose Law Group have hosted two informative video presentations on how the CTA will affect your business. Watch Part I here and Part II here.
