Corporate Transparency Act It's Back | Insights | Holland & Knight

Law Firm blog sums it up well.

Thanks. Probably low on Elon's list, but needs to be cut.

nice little Grok summary of that blog post for the TLDR people like me

Quote:

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Here's a quick summary of the article:

The Corporate Transparency Act (CTA) is a law in the U.S. that requires certain businesses to report information about their beneficial owners to the government. After facing some legal challenges, the CTA is now back in action.

• What's New: The Act has been upheld by a court, reversing a previous decision that had put it on hold.
• Who It Affects: Small businesses, particularly those with fewer than 20 employees, need to comply by reporting who really owns or controls the company. This includes LLCs, corporations, and similar entities.
• Why: To prevent money laundering, tax evasion, and other financial crimes by increasing transparency about who owns companies.
• Compliance: Companies formed before 2024 have until the end of 2025 to file their initial reports. New companies have 90 days after formation.

In essence, if you own or manage a small business, you'll need to disclose who the real owners are to the feds to help fight financial crimes.

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tamc93 said:

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Thanks. Probably low on Elon's list, but needs to be cut.

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Can you give more detail as to why it is bad? Is it the paperwork or something that would harm a small business in some way? Just the way it is written and not the end goal?

It seems like the intent of the law is to put more transparency on shell corporations and other fake businesses that people love to set up to launder money.

AtticusMatlock said:

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tamc93 said:

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Thanks. Probably low on Elon's list, but needs to be cut.

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Can you give more detail as to why it is bad? Is it the paperwork or something that would harm a small business in some way? Just the way it is written and not the end goal?

It seems like the intent of the law is to put more transparency on shell corporations and other fake businesses that people love to set up to launder money.

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It seems to me like just another way to create new avenues to harass and punish people.

Enormously expensive for small business to comply. Large corporations already operate under SARBOX and other government reporting, so not a big add.

But this is enormously destructive to Main Street..

The federal government collects so much data that they lack the capacity to process, much less understand. For example, the data reported to the government by private investment fund manager, on top of audited financial statements, in required submissions such as Form PF, Form ADV, take enormous man hours. And there is no way the government can fathom things like net and gross notional values of complex derivative financial statements.

Already summarized above.

They already have all of this data and forcing the "good guys" to comply so they can find the 'bad guys". Why don't they just do their job to find the bad guys?

Kind of like gun control laws - the bad guys will still be bad and I am being forced to comply.

AtticusMatlock said:

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tamc93 said:

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Thanks. Probably low on Elon's list, but needs to be cut.

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Can you give more detail as to why it is bad?

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It's none of the Feds freaking business, that's why!

I assume as a minority partner in an LLP, this does not affect my taxes, but will only report my name as an owner on the business' tax return?

Oh, the fact that the business will have to pay for this useless *****