This series of blogs in in connection with the Corporate Transparency Act (the “CTA”). In December of 2021 regulations were issued by the Federal Crimes Enforcement Network (“FinCEN”), which is the agency charged with enforcing the CTA. Each year about 2 million LLC’s and corporations are formed under state law. Most states, including Nebraska, do not require the disclosure of the beneficial owners of corporations or LLC’s. The CTA was passed to provide for transparency of legal entities to allow law enforcement to detect and combat illegal activities, including money laundering and terrorism. The CTA applies to both domestic LLCs and corporations formed under state or Indian Tribal law and to foreign entities that are registered under state or Indian Tribal law. The disclosure requirements are a shift in existing corporate and LLC law which, in Nebraska, do not require the disclosure of the owners of the corporation or LLC.
Due to the complexity of the CTA, this series of blogs will address various portions of the CTA. If you have an ownership interest in a corporation or LLC you need to be aware of the filing requirements under the CTA. For corporations or LLCs formed before the effective date of the regulations, the filing requirements will go into force two years after the regulations are adopted. The proposed regulations, and a fact sheet regarding the regulations can be found at FinCEN’s website: www.fincen.gov/news.
If you have questions concerning the CTA and how and if it applies to an entity in which you have an ownership interest you should contact your attorney for further information.
Share This Story, Choose Your Platform!
