Frequently Asked Questions

The CTA will be in full effect as of January 1, 2024.  FinCEN will begin accepting reports on that date. If you created or registered the company prior to January 1, 2024, you will have until January 1, 2025 to report beneficial ownership information. If you create or register the company on or after January 1, 2024, you must file within 30 days of notice of creation or registration. Companies must report updates or corrections to beneficial ownership information previously filed with FinCEN within 30 days. Please note that FinCEN cannot accept reports before January 1, 2024.

Reporting companies will be required to report via an electronic form via FinCEN’s website.  The form is not accessible at this time.  However, it will become available when the reporting requirement is in full effect (January 1, 2024).

If you determine that your company is considered as a reporting company, you must now identify the company’s beneficial owners for reporting.  A beneficial owner is any individual who, directly or indirectly:

1. Exercises substantial control over a reporting company;

OR

2. Owns or controls at least 25 percent of the ownership interests of a reporting company

For a more detailed breakdown of beneficial ownership, see Chapter 2 of FinCEN's Small Entity Compliance Guide.

Twenty-three types of entities are identified as being exempt from the beneficial ownership information reporting requirements.  Many of the exemptions are due to the fact that the entities are already heavily regulated and are already reporting in some way via other government agencies.  Some of the exempted entity types:

• Publicly traded companies
• Nonprofits
• Certain large operating companies

FinCEN’s Small Entity Compliance Guide includes checklists for each of the 23 exemptions that may aid in determining whether your company qualifies.  See section 1.2 of the guide for more details.

Reporting companies are those entities required to report information regarding beneficial owners.  Your company may be considered as a reporting company if the company is:

1. A corporation, limited liability company (LLC), or was otherwise created in the United States by filing a document with a secretary of state or any similar office under the law of state or Indian tribe; or
2. A foreign company and was registered to do business in any U.S. State or Indian tribe by such a filing.

FinCEN has prepared a Small Entity Compliance Guide which was created to help small businesses navigate the new requirements.  All small business owners are strongly encouraged to take the time to download and thoroughly review this helpful tool.  More information regarding reporting companies can be found in Chapter 1.1 of this guide.