Corporate Transparency Act Part 2 Beneficial Owner – Exercising Substantial Control
April 14, 2023 | Georgia Kellogg
The Corporate Transparency Act (the “CTA”) was enacted by Congress on January 1, 2021 as part of the federal government’s initiative to crack down on illicit activities. Effective January 1, 2024, most new and existing entities registered to do business in the United States will be mandated to file a report with the Financial Crimes Enforcement Network (“FinCEN”) disclosing information about the entity’s beneficial owners. The CTA defines a beneficial owner as any individual who, directly or indirectly, either exercises “substantial control” over the company or owns or controls at least 25% or more of the company’s ownership interests. An individual may directly or indirectly own or control the ownership interest of the company through various means, including joint ownership with one or more persons, through another individual acting as an intermediary, custodian, or agent, as a trustee, beneficiary, or grantor of a trust or similar arrangement, or by means of ownership or control of one or more intermediary entities that separately or collectively own or control the ownership interest of the company subject to reporting. “Substantial control” is exercised over the company if the individual 1) serves as a senior officer of the company; 2) has authority over the appointment or removal of any senior officer or a majority of the board…
Read MoreHerman L. Talle Retirement
February 15, 2023 | Barna, Guzy & Steffen, Ltd.Attorney Herm Talle is a well-known figure in Anoka County legal fields and has practiced since 1959. Herm joined Barna, Guzy & Steffen, Ltd. during a merger in 1991 with the intention of winding down his practice. That practice continued for another thirty-two years. Herm finally decided to retire on January 31st, 2023. During those final 32 years Herm counseled many young attorneys and taught them how to be good lawyers. Full of history, knowledge and a unique insight on legal practice, Herm routinely made everyone’s day brighter at BGS just by showing up and being part of the team. His stories will be missed dearly, and we wish him all the best in retirement at long last. Congratulations Herm! Well done and well-earned retirement.
Read MoreCorporate Transparency Act: Part I
February 9, 2023 | Carole Clark Isakson
An Introductory Overview Congress passed the Corporate Transparency Act (the “CTA”) in 2020 as part of its initiative to crack down on illicit activities, such as money laundering, commonly associated with shell companies. Under the CTA, many entities formed or registered to do business in the United States will be required to report various information concerning beneficial ownership of/decision-makers for, a given company. The Financial Crimes Enforcement Network (“FinCEN”), under the direction of the United States Department of the Treasury, has been tasked with preparing the regulations that will govern the beneficial ownership reporting requirement and provide for enforcement. The reporting obligations under the CTA will impact hundreds of thousands of entities, including corporations, limited liability companies, partnerships, and various non-profit organizations. The most significant impact will be felt by small and mid-size companies, and the individuals who own and operate them, who did not previously have any mandated federal reporting responsibilities. Final regulations under this Corporate Transparency Act were released by FinCEN in September 2022, and go into effect beginning January 1, 2024. Entities and individuals subject to these new regulations will be required to submit a beneficial ownership information report identifying each beneficial owner, decision maker, and company applicant. These individuals will be required to submit information about themselves as part…
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