Giannoulias Alerts Businesses About New Federal Reporting Requirement
SPRINGFIELD - A new federal law that took effect on Jan. 1 will impact many Illinois small business owners and companies by requiring they report more information to the federal government, Illinois Secretary of State Alexi Giannoulias announced. The Corporate Transparency Act (CTA) was enacted to establish and maintain a national registry of beneficial owners of entities that are otherwise not subject to disclosure regulations to prevent money laundering, corrupt financial institutions, and financial terrorism. The CTA will affect small businesses, corporations, or other domestic or foreign entities like LLPs or LLCs that file documents with the Illinois Secretary of State’s office. Those businesses are now required to disclose the entity’s beneficial owners – individuals who own or control the company – to the Financial Crimes Enforcement Network (FinCEN), a bureau within the U.S. Treasury. The CTA defines beneficial owners as shareholders who own 25 percent
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