Should be Seth & Alexander and Seth & Associates clients,


A recent development that may impact your business operations—the Corporate Transparency Act (CTA) will be in effect January 1st, 2024. This federal legislation aims to enhance corporate transparency and combat money laundering and illicit activities.

 

At Seth & Associates, we understand the importance of compliance with evolving regulations. Our team is ready to assist you in navigating the complexities of the Corporate Transparency Act. We can provide guidance on identifying beneficial owners, preparing the required documentation, and ensuring timely and accurate submissions to FinCEN.

What is the Corporate Transparency Act (CTA)?
The CTA, signed into law on January 1, 2023, mandates certain businesses to report beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN). Beneficial ownership refers to individuals who directly or indirectly own or control 25% or more of a legal entity.

How does this affect you?
As valued clients of Seth & Associates, it is essential for you to be aware of the CTA requirements. If your business falls under the scope of the CTA, you will need to report beneficial ownership information to FinCEN. Failure to comply with the CTA may result in penalties and fines.

What do you need to do?

1. Identify Beneficial Owners:Determine individuals who own or control 25% or more of your company, including indirect ownership through other entities.

2. Gather Required Information: Collect necessary information about the beneficial owners, such as full legal names, addresses, dates of birth, and Social Security numbers.

3. Submit to FinCEN: File the required beneficial ownership information with FinCEN through their secure portal within the specified deadlines.

See Exceptions:

1. Securities reporting issuers: Companies registered with the SEC under the Securities Exchange Act of 1934.

2. Governmental authorities: Entities established by governments and exercising governmental authority.

3. Banks, credit unions, and depository institution holding companies: As defined by federal regulations.

4. Money services businesses: Registered with FinCEN under 31 U.S.C. 5330 and 31 CFR 1022.380.

5. Brokers and dealers in securities: Registered with the SEC under the Securities Exchange Act of 1934.

6. Securities exchanges and clearing agencies: Registered with the SEC under the Securities Exchange Act of 1934.

7. Other Exchange Act registered entities: Entities registered with the SEC other than those already mentioned.

8. Investment companies and investment advisers: Registered with the SEC under relevant Investment Acts.

9. Venture capital fund advisers: Registered with the SEC and meeting specific criteria.

10. Insurance companies: Defined as such in the Investment Company Act of 1940.

11. State-licensed insurance producers: Meeting specific criteria.

12. Commodity Exchange Act registered entities: Registered with the Commodity Futures Trading Commission.

13. Accounting firms: Registered with the PCAOB under the Sarbanes-Oxley Act of 2002.

14. Public utilities: Providing specific services within the United States.

15. Financial market utilities: Designated by the Financial Stability Oversight Council.

16. Pooled investment vehicles: Operated or advised by certain exempt entities.

17. Tax-exempt entities: Described in specific sections of the Internal Revenue Code.

18. Entities assisting tax-exempt entities: Meeting specific criteria.

19. Large operating companies: Employing more than 20 full-time employees in the US and meeting other criteria.

20. Subsidiaries of certain exempt entities: Controlled by entities listed in exemptions 1-21.

21. Inactive entities: Not engaged in active business, owned by US persons, and meeting other criteria.

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​Feel free to reach out to Val Aguirre

VAguirre@SethandAlexander.com or call 713-965-7572 X-708 with any questions or to schedule a consultation regarding your specific situation.