New Corporate Transparency Act Regulations and Exemptions: Will You Need to File?
Take the free Quiz below to finish the review process. If you must file, then start collecting the necessary data on the “Beneficial Owners” and “Company Applicant” to get ready. We will contact you when it is time to register.
Do You Need to File?
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Corporate Transparency Act Exemptions
If a company wants to be exempt from having to provide beneficial ownership information, it must meet certain requirements. The company must employ more than 20 full-time employees in the United States, and it must have filed federal income tax returns in the United States demonstrating more than $5,000,000 in gross receipts or sales in the aggregate. The company must also have an operating presence at a physical office within the United States. In addition, the company’s ownership interests must be owned or controlled by entities that themselves meet one of the criteria for exemption. Finally, the Secretary of the Treasury, with concurrence from the Attorney General and the Secretary of Homeland Security, may exempt additional companies or classes of companies by regulation if requiring beneficial ownership information from them would not serve the public interest or be highly useful in national security, intelligence, or law enforcement agency efforts to detect, prevent, or prosecute money laundering, the financing of terrorism, proliferation finance, serious tax fraud, or other crimes.
You can find the exemptions stated by congress below but if you would like to simply find out if you will need to file you can take our quick, “Do I Need to File for CTA?” questionnaire above to determine if your firm is required to file with FinCEN under the Corporate Transparency Act effective in 2022.
H.R.2513 – Corporate Transparency Act of 2019
“do not include any entity that is—
“(i) a business concern that is an issuer of a class of securities registered under section 12 of the Securities Exchange Act of 1934 (15 U.S.C. 781) or that is required to file reports under section 15(d) of that Act (15 U.S.C. 78o(d));
“(ii) a business concern constituted, sponsored, or chartered by a State or Indian Tribe, a political subdivision of a State or Indian Tribe, under an interstate compact between two or more States, by a department or agency of the United States, or under the laws of the United States;
“(iii) a depository institution (as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813));
“(iv) a credit union (as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752));
“(v) a bank holding company (as defined in section 2 of the Bank Holding Company Act of 1956 (12 U.S.C. 1841)) or a savings
and loan holding company (as defined in section 10(a) of the Home Owners’ Loan Act (12 U.S.C. 1467a(a));
“(vi) a broker or dealer (as defined in section 3 of the Securities Exchange Act of 1934 (15 U.S.C. 78c)) that is registered under section 15 of the Securities Exchange Act of 1934 (15 U.S.C. 78o);
“(vii) an exchange or clearing agency (as defined in section 3 of the Securities Exchange Act of 1934 (15 U.S.C. 78c)) that is registered under section 6 or 17A of the Securities Exchange Act of 1934 (15 U.S.C. 78f and 78q–1);
“(viii) an investment company (as defined in section 3 of the Investment Company Act of 1940 (15 U.S.C. 80a–3)) or an investment adviser (as defined in section 202(11) of the Investment Advisers Act of 1940 (15 U.S.C. 80b–2(11))), if the company or adviser is registered with the Securities and Exchange Commission, has filed an application for registration which has not been denied, under the Investment Company Act of 1940 (15 U.S.C. 80a–1 et seq.) or the Investment Adviser Act of 1940 (15 U.S.C. 80b– 1 et seq.), or is an investment adviser described under section 203(l) of the Investment Advisers Act of 1940 (15 U.S.C. 80b–3(l));
“(ix) an insurance company (as defined in section 2 of the Investment Company Act of 1940 (15 U.S.C. 80a–2));
“(x) a registered entity (as defined in section 1a of the Commodity Exchange Act (7 U.S.C. 1a)), or a futures commission merchant, introducing broker, commodity pool operator, or commodity trading advisor (as defined in section 1a of the Commodity Exchange Act (7 U.S.C. 1a)) that is registered with the Commodity Futures Trading Commission;
“(xi) a public accounting firm registered in accordance with section 102 of the Sarbanes-Oxley Act (15 U.S.C. 7212) or an entity controlling, controlled by, or under common control of such a firm;
“(xii) a public utility that provides telecommunications service, electrical power, natural gas, or water and sewer services, within the United States;
“(xiii) a church, charity, nonprofit entity, or other organization that is described in section 501(c), 527, or 4947(a)(1) of the Internal Revenue Code of 1986, that has not been denied tax exempt status, and that has filed the most recently due annual information return with the Internal Revenue Service, if required to file such a return;
“(xiv) a financial market utility designated by the Financial Stability Oversight Council under section 804 of the Dodd-Frank Wall Street Reform and Consumer Protection Act;
“(xv) an insurance producer (as defined in section 334 of the Gramm-Leach-Bliley Act);
“(xvi) any pooled investment vehicle that is operated or advised by a person described in clause (iii), (iv), (v), (vi), (viii), (ix), or
(xi);”
From https://www.congress.gov/bill/116th-congress/house-bill/2513/text
