The Corporate Transparency Act Is Almost Here: What You Should Know About the New Reporting Requirements
Event summary
This webinar focused on the US Corporate Transparency Act and the new beneficial ownership information (BOI) reporting rule requirements that start taking effect on January 1, 2024. The BOI rule will require a “reporting company” to provide information to the Financial Crimes Enforcement Network (FinCEN) about the company itself, as well as the individuals who are beneficial owners of the company and, for companies formed on or after January 1, 2024, “company applicants” who helped create the company.
The rule is expected to have a huge impact, with FinCEN estimating that there are 32.6 million existing companies and 5 million new companies formed each year that will be subject to the new reporting requirements. During this virtual event, Cooley practitioners addressed the key elements of the BOI rule, the likely impact on various types of organizations, and frequently asked questions about the reporting requirements.
Issues covered included:
- What a “reporting company” is and which key exemptions may exclude a company (and its subsidiaries) from obligations under the BOI rule.
- The two prongs of beneficial ownership – ownership interests and substantial control –and their potential application in common emerging company and venture capital/private equity structures.
- The information that a reporting company must provide to FinCEN about the company itself and each individual who is a beneficial owner.
- The meaning of “company applicants” and the information that a reporting company must provide to FinCEN about them.
- Requirements to keep information up to date – and potential penalties for noncompliance.
Speakers
- Adam Fleisher – Special counsel at Cooley
- Winston Gu – Partner at Cooley
For more information, please email Rebecca Lanz.
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