Compliance

Getting ahead of the Corporate Transparency Act.

A major shift in business privacy arrived with the Corporate Transparency Act. Owners who understand it early can stay both compliant and private.

By Tresp, Day & Associates · December 13, 2022

The short version The Corporate Transparency Act (CTA) created a federal requirement for many companies to report their beneficial owners to FinCEN. The reporting database is not public, so private ownership structures still work against plaintiffs and the public, but automatic anonymity from the government is gone. Understanding the rules early lets you plan structures that are both compliant and private.

For years, forming an entity in a privacy-friendly state kept ownership largely out of view. The Corporate Transparency Act changed the baseline by adding federal beneficial-ownership reporting. Here is what owners should understand as the rules take effect.

What’s new

Many corporations, LLCs, and similar entities must file a report identifying the individuals who own or control them. It’s a government information filing, to FinCEN, the federal financial-crimes bureau, with deadlines and penalties for non-compliance.

What hasn’t changed

Crucially, these reports are not public records. Your ownership can still be kept off the county recorder and out of easy public view through legitimate privacy structures. The CTA affects what the government knows, not what a plaintiff’s attorney can find. Privacy planning and CTA compliance coexist.

Plan ahead

The best response is proactive: understand your filing obligations, keep them current, and structure ownership so it remains private from the public while fully compliant with the government. Tresp, Day & Associates helps owners navigate both sides. This is general information, not legal advice, confirm current requirements with counsel.

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Since 1992, Tresp, Day & Associates has structured asset protection for families and businesses nationwide. Request a consultation or call (858) 755-6672.

Common questions

Frequently asked

Can I still keep my business ownership private under the Corporate Transparency Act?

Yes, from the public. The CTA requires reporting beneficial owners to FinCEN in a non-public database, so private ownership structures still keep your name off public records and away from plaintiffs' attorneys. What changed is that automatic anonymity from the government is gone, so the goal is to be both compliant with the filing and private from the public.

This article is general information, not legal or tax advice, and does not create an attorney-client relationship?

This article is general information, not legal or tax advice, and does not create an attorney-client relationship. Every situation is different and the law changes; consult a qualified attorney about your circumstances.

This website is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Every situation is different; please consult a qualified attorney about your specific circumstances.

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