Corporate Transparency Act Regulations
The beneficial owner of a reporting company must provide their full legal name, date of birth, current address, and citizenship information to the company. The reporting company is then responsible for submitting this information to FinCEN. If the beneficial owner provides incorrect information, they may be held liable for any fines imposed on the reporting company as a result.
In order to comply with the CTA, the reporting company must collect and report the following information about itself to FinCEN: legal name, any alternative names through which the company is doing business, business street address, the jurisdiction of formation, and a unique identification number. The reporting company must also obtain the same information from the applicant – the person who created the company by filing the formation document with the state agency.
If the reporting company is an LLC, the members must be notified of the CTA requirements and obligated to provide the required information to the company by a specific date. This can be done by adding language to the LLC’s Operating Agreement. If the company is a corporation, you should try to get all of the beneficial owners to sign a Stockholders’ Agreement that obligates them to deliver all of the required information to the corporation before the FinCen filing deadline.
Once all of the required information has been collected, it must be filed with FinCEN. The U.S. Treasury has not finalized the regulations that provide how reporting companies must file their FinCen report. When that information becomes known, we will update this website and send subscribers to our free CTA newsletter a notice of how to file their report.
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