Corporate Transparency Act
Federal law (31 U.S.C. § 5336) requiring beneficial-owner disclosure for US entities. Effective 2024.
Definition
The Corporate Transparency Act (CTA) is a federal law requiring most US business entities to disclose beneficial ownership to FinCEN. Enacted as part of the National Defense Authorization Act of 2021. BOI reporting requirements became effective January 1, 2024.
Context
After legal challenges through 2024-2025, the CTA's BOI requirements were upheld and remain in effect. Newly formed entities since 2024 must file within 90 days of formation.
Example
Every new Delaware LLC formed since 2024 has a BOI filing obligation under the CTA.
Common pitfalls
- Penalty is $591/day for non-filing.
- CTA does not apply to all entity types; some are exempt (large operating companies, certain banks).