The Corporate Transparency Act (CTA) is a US legislation aimed at increasing corporate transparency and accountability to minimize the risk of illegal activities conducted by reporting entities. Under this law, reporting companies must provide detailed information about their current “beneficial owners” to FinCEN, a bureau within the US Treasury Department responsible for holding organizations accountable. Severe financial penalties are imposed on corporations that fail to comply with the law.

To be compliant with the CTA, reporting companies must disclose the name, official business street addresses, jurisdiction of formation or registration, and Taxpayer Identification Number (“TIN”) of their entity. Reporting companies must also disclose information about their beneficial owners who exercise substantial control over the entity or who own or control not less than 25% of the ownership interests.

Entity management software enables organizations to document all reporting information in one place. It allows companies to manage all shareholder information in detailed shareholder ledgers and appoint or remove board members and corporate managers within one designated system. Any updates made within the platform are automatically audited to ensure that reporting companies maintain proper records for compliance purposes.

Failure to comply with the CTA may result in significant financial penalties and even imprisonment. Civil and criminal penalties are applied to corporations that fail to report to regulatory authorities or for unauthorized use or disclosure of beneficial ownership data. Daily civil penalties of up to $500 may be charged for as long as the violation continues, and a possible criminal fine of $10,000 and up to 2 years in prison may also be charged to the beneficial owners.

• The Corporate Transparency Act is a US legislation aimed at increasing corporate transparency and accountability to minimize the risk of illegal activities conducted by reporting entities.
• Reporting companies must disclose their entity's name, official business street addresses, jurisdiction of formation or registration, and Taxpayer Identification Number (“TIN”). Reporting companies must also disclose information about their beneficial owners who exercise substantial control over the entity or who own or control not less than 25% of the ownership interests.
• Entity management software allows organizations to document and manage all reporting information in one place. It enables companies to manage all shareholder information in detailed shareholder ledgers and appoint or remove board members and corporate managers within one designated system.
• Failure to comply with the CTA may result in significant financial penalties and even imprisonment. Civil and criminal penalties are applied to corporations