How the Corporate Transparency Act Impacts Many Wealthy Families

In case you missed our firm’s previous newsletters, a new federal law imposed reporting requirements for many corporations, partnerships, and LLCs. The Corporate Transparency Act (“CTA”) requires companies and their owners to report certain information to the Financial Crimes Enforcement Network by December 31, 2024.

Entities with reporting obligations include not only operating businesses but even single-member LLCs that simply hold a vacation home or rental property. While there are limited exceptions to the reporting obligations, such as for tax-exempt entities and certain large operating companies, many entities will be required to file, or the individuals with an ownership interest in or substantial control of such entities may face civil and even criminal penalties.

Please contact the AGG Private Wealth group if you have an ownership interest in or substantial control of an entity to discuss how the CTA might affect you.