Corporate Transparency Act (CTA)

The Corporate Transparency Act (CTA) is a federal law that becomes effective January 1, 2024. The purpose of the CTA is to prevent and identify financial crimes, such as money laundering, tax fraud, and sanctions evasion.

Though the CTA is focused on smaller businesses, most businesses will be classified as “reporting companies”. There are 23 exemptions to that classification that will not report, including “large companies”, publicly-traded companies, banks, insurance companies, tax exempt entities and political organizations.

The CTA requires reporting companies to file specific “Beneficial Ownership Information” through an online portal run by the US Financial Crimes Enforcement Network (FinCEN). The information will not be publicly available but will be shared with law enforcement.

Reporting companies in existence in West Virginia before January 1, 2024 must file their initial reports within before January 1, 2025. New companies created between January 1, 2024 and December 31, 2024 will have 90 days after registration to file. Reporting companies created on or after January 1, 2025 will have 30 days after registration to file. Any change to Beneficial Ownership Information must be reported within 30 days of the change (e.g. sale, merger, acquisition, or death of a member).

To date, our office (and every other Secretary of State’s office) has received no federal funding or educational materials to assist WV businesses. FinCEN expects to produce educational materials for public consumption in the future. In the meantime, we will support WV businesses in every possible manner until the Federal Government provides guidance on its new federal requirements .

Despite lingering uncertainties, WVSOS will be ready on January 1 t​o support every WV business and provide resources for their education and understanding of these new federal requirements.​