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Easler Law PLLC 321-206-3603
Business
Andrew David Easler, Esq. Published January 1, 2024

What Is the Corporate Transparency Act?


A federal anti money laundering law. Since 2025, U.S. companies are exempt. Only certain foreign companies still report to FinCEN.

Update (October 2026): Under FinCEN's interim final rule of March 26, 2025, made permanent by a final rule published and effective August 14, 2026, companies created in the United States and U.S. persons no longer have to report beneficial ownership information. Only certain foreign companies registered to do business in a U.S. state must still report, and they do not report U.S. persons or U.S. company applicants.

The Corporate Transparency Act (CTA) is a federal law passed in January 2021 as part of the National Defense Authorization Act. Its goal is to make it harder to hide money laundering, fraud, and other financial crimes behind shell companies.

Key aspects of the Corporate Transparency Act today:

  • Who Must Report: Only entities formed under the law of a foreign country that have registered to do business in a U.S. state or tribal jurisdiction. Every company created in the United States, including a Florida LLC or corporation, is exempt.

  • What Is Reported: Foreign reporting companies report their foreign beneficial owners. They do not report U.S. persons, and U.S. persons do not have to provide their information to these companies.

  • Who Is a Beneficial Owner: An individual who owns or controls at least 25% of the company or exercises substantial control over it.

  • Existing Filings: U.S. persons who already filed or obtained a FinCEN ID do not need to update those filings. FinCEN has said it plans to delete previously reported information for U.S. persons and will post a notice on its website when that is complete.

  • Penalties: Civil and criminal penalties remain in the law, but they now matter only to companies that still have to report.

  • History: The original rule took effect January 1, 2024 and covered most U.S. LLCs and corporations. That requirement was removed in March 2025 and the change became permanent in August 2026.

If you own a company formed outside the United States that is registered in Florida, a business attorney can confirm whether you still need to file.

Sources: https://www.fincen.gov/news/news-releases/fincen-removes-beneficial-ownership-reporting-requirements-us-companies-and-us , https://www.fincen.gov/news/news-releases/fincen-permanently-ends-beneficial-ownership-reporting-requirements-millions , https://www.fincen.gov/boi , https://www.fincen.gov/boi-faqs

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