Goldburd | Goldburd McCone LLP

For nationwide tax guidance, call:
212-235-1537 or toll-free at 866-712-9505.

Goldburd | Goldburd McCone LLP

For nationwide tax guidance, call: 212-302-9400 or toll-free at 844-653-2873.

Serving Individual And Corporate Tax Clients Nationwide From Our New York, New Jersey, Florida And California Offices

Steven Goldburd and Benjamin A Goldburd

Since 1983, our tax firm has skillfully represented individuals and corporations across the United States and around the globe from our offices in New York, New Jersey, California and Florida.

Keep Your Business In Compliance With The Corporate Transparency Act (CTA)

Staying abreast of all the federal, state and local regulations that govern your business operations can be difficult. Things are constantly changing.

At Goldburd McCone LLP, our attorneys assist clients in Corporate Transparency Act (CTA) compliance matters and help businesses identify beneficial owners and reporting requirements. They also assist our clients as they seek to understand what compliance policies need to be implemented and how the CTA may affect investment and management strategies. With more than 30 years of service in New York and throughout the nation, we offer reliable representation for businesses of all sizes.

What Is The Corporate Transparency Act?

The CTA stands out as a significant piece of legislation aimed at curtailing illicit financial activities. It was enacted to address concerns related to money laundering and other financial crimes. The CTA imposes reporting requirements for certain companies operating in the United States.

What Does The Corporate Transparency Act Do?

The primary objective of the CTA is to enhance transparency by requiring qualifying companies to disclose information about their beneficial owners. By doing so, the legislation seeks to prevent the misuse of corporate structures, such as shell companies, for illegal activities like money laundering and tax evasion and fraud.

What Is A Reporting Company?

Under the CTA, a reporting company refers to any entity that falls within the defined criteria for reporting beneficial ownership information. There are two main categories of reporting companies: domestic reporting companies and foreign reporting companies.

A domestic reporting company is an entity formed or registered to do business in the United States. This includes various business structures, such as corporations, limited liability companies (LLCs) and other similar entities.

On the other hand, a foreign reporting company is an entity that is formed or registered to do business in a foreign jurisdiction but operates within the United States. This distinction is crucial to ensure that both domestic and foreign entities are held to the same standards of transparency.

Who Is A Beneficial Owner?

A beneficial owner is anyone who directly or indirectly owns or controls a significant portion of the reporting company. The CTA defines beneficial owners as those who own 25% or more of the company or exercise substantial control over its activities.

What Information Needs To Be Reported?

Reporting companies are required to disclose detailed information about their beneficial owners. This includes the full legal name, date of birth, address and unique identification number (such as a driver’s license or passport number) of each beneficial owner. The reported information will be maintained in a confidential database accessible only to authorized government agencies.

Are There Any Exemptions?

While the CTA imposes reporting obligations on a broad spectrum of companies, certain entities are exempt from these requirements. Small businesses, publicly traded companies and entities with a substantial reporting history may be exempted from some or all of the reporting obligations. However, it’s essential for businesses to carefully review the exemptions and ensure compliance.

What Are Reporting Penalties?

Noncompliance with the CTA can lead to severe penalties. The act outlines financial penalties for failure to report accurate and timely information. Additionally, individuals who willfully provide false information may face criminal penalties, including fines and imprisonment.

When You Need An Experienced Corporate Lawyer, Call Us

At Goldburd McCone LLP, our attorneys provide highly sophisticated guidance with a customized approach. They are cost-effective for both emerging businesses and others, and they always keep our clients’ long-term objectives in mind.

When you need corporate representation with a long history of success, email us or call locally at 212-302-9400 or toll-free at 844-653-2873 to schedule a consultation. We have offices conveniently located in Manhattan, Long Island, Rockland County, New Jersey, Los Angeles and Florida.