You Can’t Hide from the Corporate Transparency Act

The Corporate Transparency Act (CTA) became law in January 2021 and so far has been almost invisible—but that is about to change, and with a vengeance. Beginning January 1, 2024, the CTA will come crashing into the lives of all small US business owners—and also into the lives of their attorneys. First, the CTA requires detailed filings about the ownership and control of ALL small US operating businesses. If a business entity has fewer than 20 employees and less than $5 million of gross receipts, the entity will need to disclose to the US government all 25% owners as well as anyone else who exercises ”substantial control” over the business. Second, information must also be furnished about any lawyer, paralegal, or other individual who supervises or files the document (e.g., Articles of Incorporation) that creates a new business entity. Not only does the CTA require a detailed initial filing, but the information thereafter…