The Corporate Transparency Act Means Jail Time for Small Business Owners
4th May 2024
The Corporate Transparency Act (CTA) is a classic example of intrusive big-government overreach. It places a new compliance burden on main street Americans with an LLC, and failure to comply comes with criminal penalties that could land you behind bars.
The CTA requires individuals with “substantial control” over a company or an equity position of 25 percent or greater to disclose personal data with the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) – a government bureau most Americans have never heard of before.
The CTA will impact small businesses across the nation in addition to millions of citizens who use LLCs to invest in real estate or to protect their assets. Over 32 million business entities are estimated to be affected by the law.
Americans with a CTA filing obligation must report their name, date of birth, address, and a scan of their government-issued photo ID to the Treasury Department. Any time this information changes, updated information must be submitted to FinCEN’s database within thirty days.