Burr & Forman partner Callie Whatley authored the article, “The Corporate Transparency Act Adds Administrative Burden to Companies,” which published Mar. 4 in Business Alabama.

In the article, Whatley discussed the Corporate Transparency Act’s enactment and its purpose as a check on money laundering and other financial crimes. She highlighted the scope of the law, stating, “FinCEN estimates that 32 million business entities already in existence as of Jan. 1, 2024, will be required to register with FinCEN, with 5 million additional reporting companies being added each following year.”

Whatley identified which organizations fall under the “reporting company category,” which are categorized as “beneficial owners” under the CTA, and what information about beneficial owners must be shared with the government.

She also explained how businesses can streamline the reporting process: “Any reporting company formed after Jan. 1, 2024, will have 90 days after formation to submit its beneficial ownership report to FinCen, and beginning in 2025, this timeline will reduce to 30 days.”

“Ultimately, businesses should be able to find ways to adjust to ensure initial and continued compliance. Until then, they will need to educate themselves on the new law’s impact on their operations,” suggested Whatley.

To view the full article, you may click here.