Did you know the Corporate Transparency Act (CTA) is set to go into effect on January 1, 2024? This Act represents a significant shift in the way reporting companies in the United States must disclose their beneficial ownership information. As a Florida estate planning law firm, we know how crucial it is to both understand the implications of this Act and share this with our clients, especially in the context of business succession, mergers, acquisitions, and the administration of estates.
First of all, it is important to understand that the CTA aims to curb illegal activities like money laundering, tax evasion, and financing of terrorism by enhancing transparency in the ownership of legal entities. It mandates the disclosure of beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN).
There are key compliance dates to know and understand as we approach the end of the year including, but not limited to, the following:
What will need to be reported? Right now, we understand that the CTA requires the following information for each beneficial owner and company applicant:
There will be more than just the initial reporting, however. It is important to note that reports must be updated within 30 days in the following scenarios:
For our Florida estate planning attorneys, the CTA has multiple implications including:
The Corporate Transparency Act introduces significant changes in reporting requirements for legal entities. Staying abreast of these changes and guiding our estate planning clients through compliance is essential for us at this time and we look forward to answering your questions. Understanding and preparing for the CTA’s implications will be crucial in ensuring that your estate and business planning strategies remain compliant and efficient.
We know this article may raise more questions than it answers. Our Florida estate planning law firm takes a very different approach from what you might have come to expect. Our goal is to create lifelong relationships with each of our clients, to guide and manage your legacy for the rest of your life. Please contact our offices in Stuart and in Palm City to learn more.