Corporate Transparency Act Update
The Corporate Transparency Act (CTA) and its required Beneficial Ownership Information reporting requirements seem destined to be hung up in the courts for at least the foreseeable future, but that doesn’t mean that you don’t have a filing requirement. While a federal court in Alabama has ruled it unconstitutional, the ruling applies ONLY to members of the National Small Business Association. Our friends at Bridgeford Trust Company have put together a nice article about the case that you can read here.
In the interim, we are advising clients to contact legal counsel to discuss their specific situation and gather the necessary information to comply with the act.
As a refresher, all entities that meet the filing requirements and were formed prior to 2024 are currently required to file before January 1, 2025. If you formed an entity in 2024, you have 90 days to register. Who is required to file is anything but straightforward. There are currently 23 exemptions that you can read about here.
As always, if you have questions, we’re here to help. Please reach out to a member of our tax team for clarification.
