The Corporate Transparency Act (CTA) is a significant piece of legislation aimed at increasing transparency in corporate ownership and combating illicit activities such as money laundering and tax evasion. Under the CTA, certain reporting companies are required to disclose beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN).

Updating Reports

Under the CTA, reporting companies are required to update their reports within a specific timeframe if there are any changes to the previously reported information. This includes but is not limited to when a reporting company hires a new senior officer or when a beneficial owner is added to the company or dies, or when a beneficial owner gets married and changes their name. 

Deadlines for Updating Reports

The CTA mandates that reporting companies must file an updated report with FinCEN within 30 days of any change in the reported information. This ensures that the beneficial ownership information remains accurate and up-to-date. 

Importance of Compliance

Compliance with the CTA is essential for avoiding significant penalties. Failure to report or update beneficial ownership information as required can result in substantial fines and legal consequences. By staying compliant, companies can avoid these risks and contribute to the broader goal of enhancing corporate transparency.

If you have any questions or need assistance with compliance, please do not hesitate to contact Glavy Law by email, bud.glavy@glavylaw.com or by telephone, 210-880-1777.