The Corporate Transparency Act (CTA), passed in 2021, mandates that a vast number of entities disclose their beneficial ownership information (BOI) to the Financial Crimes Enforcement Network (FinCEN) by the end of 2024. A beneficial owner is an individual who holds direct or indirect control over the reporting company or possesses at least a 25% ownership interest in the company.
All existing domestic and foreign entities that have previously filed formation or registration documents in the United States must submit the required information by January 1, 2025. Entities established or registered after December 31, 2023, have a 30-day filing window. Certain large entities are exempt from the reporting obligations if they meet the following criteria:
- Maintain a physical office in the United States
- Employ over 20 full-time staff members
- Generate more than $5 million in income during the previous reporting year.
