What Should Business Owners and Executives Do About CTA Compliance?

Understand the basics of the Corporate Transparency Act. 

• If you haven’t already, read our executive summary of the act.

Delegate responsibility for CTA Compliance to someone on your team.

• Set a deadline to identify that person (which could be you).
• Even if your company is currently exempt from CTA compliance, someone in your organization needs to understand how it works well enough to spot potential reporting obligations that may still apply or that may apply if there is a change in circumstances.

Adopt a plan to implement CTA Compliance.

Have your CTA compliance person prepare and implement a plan for compliance. Consider including the following:

• Identify all reporting obligations and deadlines.
  • Determine whether the company is exempt from the CTA, and the relevant exemption.
  • Determine whether any steps need to be taken to take advantage of that exemption.
  • Provide a written description of any concerns about the continued availability of the exemption.
• Determine all Beneficial Owners and Company Applicants who are required to be disclosed on the CTA reporting and collect the necessary information.
• Complete initial CTA filings on time.
• Make a list of key events and transactions that may trigger reporting obligations under the CTA.
• Make a list of documents and agreements that may need to be updated to accommodate obligations under the CTA.
• Discuss the relevant transactions with the individuals who may be involved with those processes to ensure that there is a good flow of timely information.
• Determine whether a written CTA policy is needed, and propose a written policy accordingly.
• Schedule periodic check-ins with appropriate company executives to discuss ongoing compliance efforts (consider at least quarterly check-ins for the first few years).
• Determine whether training for relevant personnel is necessary or helpful, and implement training accordingly.
• Coordinate with external providers (accountants and attorneys in particular) as needed to ensure adequate flow of information.
• Evaluate whether there are any CTA compliance issues to be aware of with respect to the company’s subsidiaries or other affiliates.
• Have a plan for staying up to date on changes to CTA compliance requirements.