The Corporate Transparency Act (CTA) is a U.S. federal law
impacting over 30 million small businesses in the United States.
The CTA mandates businesses formed as legal entities to disclose
their ownership information. Civil fines for violations are
expensive, and criminal penalties for willful noncompliance can
total up to $10,000 in fines per violation and up to 2 years in prison.
The law requires limited liability companies (LLCs), corporations,
and limited partnerships to file Beneficial Ownership Information (BOI)
Reports with the U.S. Department of Treasury's Financial Crimes
Enforcement Network (FinCEN). The CTA's objective is to aid law
enforcement agencies by revealing bad actors who use U.S. business
entities to hide money laundering, tax evasion, and other financial
BOI Reports require specific personal information about all of a
reporting company's significant owners and important decision makers.