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Articles
01.02.2024
Understand Your Obligations Under the New Corporate Transparency Act
Archer attorneys, Gianfranco A. Pietrafesa (Franco) and Zhao Li co-authored the article, "Understand Your Obligations Under the New Corporate Transparency Act, recently published in CIANJ’s Commerce Magazine ." The Corporate Transparency Act (“CTA”), which became effective on January 1, 2024, will force more than 30 million privately-held companies to register with the federal government and disclose certain personal information about their owners and management. In their article, Franco and Zhao summarize a company’s obligations under the CTA. The CTA applies to companies formed in the U.S., as well as companies formed outside the U.S. and registered to do business in the U.S. The federal government will enforce compliance with significant civil and criminal penalties on companies, senior management and owners who fail to comply with the CTA.
Client Advisories 3 results
Client Advisories
04.10.2024
An Update on the NY LLC Transparency Act
The federal Corporate Transparency Act (the “CTA”) became effective on January 1, 2024. However, it is not the only legislation requiring the disclosure of a private company’s beneficial owners. On December 22, 2023, New York Governor Kathy Hochul signed the New York LLC Transparency Act (the “NYLTA”). On March 1, 2024, she signed a chapter amendment to the same, which amended certain provisions and prescribed final rules for the NYLTA. Among other changes, this amendment postponed the NYLTA’s original effective date of December 21, 2024. Now, new LLCs formed or registered after January 1, 2026 must comply with the NYLTA within 30 days of formation/registration and LLCs existing prior to January 1, 2026 must comply by January 1, 2027.
Client Advisories
02.06.2024
Client Advisories
12.04.2023
Understanding Your Obligations Under the Corporate Transparency Act
A new federal law, the Corporate Transparency Act (“CTA”), becomes effective on January 1, 2024. The CTA requires more than 30 million privately-held companies to register with the federal government and disclose certain information about itself and its owners and management. It applies to companies formed in the U.S. as well as companies formed outside the U.S. and registered to do business in the U.S. There are significant civil and criminal penalties on companies, senior management and owners who fail to comply with the CTA. BACKGROUND The CTA was enacted into law as part of the Anti-Money Laundering Act of 2020, which is itself part of the National Defense Authorization Act for Fiscal Year 2021 (“NADA”), 31 U.S.C. § 5336. The CTA was enacted by Congress on January 1, 2021 by overriding then-President Trump’s veto of the NADA. The CTA aims to help prevent and combat money laundering, terrorist financing, corruption, tax fraud, and other illicit activity. The CTA is administered by the U.S. Department of Treasury’s Financial Crimes Enforcement Network (“FinCEN”). FinCEN has published rules implementing the CTA (the “Rules”). The Rules require certain corporations, limited liability companies, and other similar entities to disclose specific identifying information about two categories of individuals: (1) the beneficial owners who own or control such entities, and (2) the company applicants who form or register them. FinCEN will use the information to maintain a database available to law enforcement authorities and financial institutions.