Compliance

The Corporate Transparency Act and your privacy.

Federal law now requires many companies to disclose who really owns them. It doesn’t end privacy planning, but it changes it. Here’s what to know.

By Tresp, Day & Associates · October 6, 2023

The short version The Corporate Transparency Act (CTA) requires many corporations and LLCs to report their “beneficial owners” to FinCEN. The report is not public, it goes to a restricted government database, not the county recorder, so private structuring still works against the public and opportunistic plaintiffs. The change is that ownership is no longer automatically private from the government, which makes deliberate, compliant structuring more important than ever.

The CTA brought a new reporting regime for beneficial ownership, and it understandably worries people who value confidentiality. The key is understanding what actually changed, and what didn’t.

What the CTA requires

Many companies must file a report identifying their beneficial owners, generally the individuals who own or control a significant stake. This is an information filing to FinCEN, a federal financial-crimes bureau. Deadlines and requirements have specific details, and non-compliance carries penalties, so getting the filing right matters.

Who is a beneficial owner

Broadly, an individual who exercises substantial control over the company or owns a significant ownership interest. The specifics can be nuanced in layered structures, exactly where guidance helps.

Privacy is still possible, and still compliant

Crucially, CTA reports are not public. Your ownership can still be kept off public records through privacy structures, shielding it from plaintiffs’ attorneys and the general public, while you fully comply with the government filing. Privacy planning and CTA compliance are not in conflict, they operate on different audiences. We help clients do both correctly.

Ready to protect what is yours?

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

Does the Corporate Transparency Act make my company ownership public?

No. The CTA requires reporting beneficial owners to FinCEN, a federal bureau, in a database that is not public. Your ownership can still be kept off public records through privacy structures. The CTA changes what the government knows, not what the public or plaintiffs' attorneys can see, and privacy planning remains fully compatible with compliance.

Who has to file under the Corporate Transparency Act?

Many corporations, LLCs, and similar entities must file a beneficial-ownership report, with some exemptions for larger regulated companies. Because the rules, deadlines, and definitions have specific details and penalties for non-compliance, it's worth confirming your obligations with counsel. This is general information, not legal advice.

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.

Here to protect what is yours

Speak with our skilled attorneys.

Request a consultation to create a customized protection plan for your family and business.