ALERT – THE CORPORATE TRANSPARENCY ACT (CTA) – AN UPDATE

Referencing our alert, The Corporate Transparency Act (CTA): What Your Business Needs to Know for 2024 – Dilworth Paxson LLP, the Financial Crimes Enforcement Network (FinCEN) has continued to update its Frequently Asked Questions (FAQs). A full list of the FAQs can be found at Beneficial Ownership Information | FinCEN.gov.

The most recent FAQs, issued on September 10, 2024, clarify that a reporting company that was created or registered during 2024 is required to report its beneficial ownership information, even if the company ceases to exist before the reporting deadline. FinCEN, in an earlier FAQ, has taken the position that “ceases to exist” means that the company has formally dissolved and no longer exists as a legal entity.  In states like Pennsylvania, formal dissolution requires that a company apply for and receive tax clearance, which is a process that takes months to complete. However, companies that meet the requirements of an “inactive entity” may have an independent exemption from filing available to them.

We are poised to assist with your reporting compliance, to determine if a statutory exemption is available for your business, and to respond to other CTA-related questions. Please contact your Dilworth attorney or Graham R. Laub, Rosemary J. Loverdi, Roger F. Wood, or Andrea N. Metz of Dilworth Paxson LLP’s Corporate and Business practice.