Starting January 1, 2024, the Corporate Transparency Act (CTA) in the U.S. mandates over 30 million businesses to report detailed ownership information to the Treasury Department. Non-compliance may result in fines or jail time. The law aims to eliminate anonymity in business ownership, targeting illicit financial activities and money laundering. Reporting is required for various entities, with limited exceptions. Exemptions include large operating companies meeting specific criteria and inactive business entities meeting certain conditions. Businesses falling under the definition of "Reporting Company" must file a Beneficial Ownership Information (BOI) report by January 1, 2025. The process involves determining beneficial owners and gathering necessary information. Preparation is essential, as legal and accounting professionals may not automatically handle CTA matters. Next week's column will explore FinCEN Identifiers and resources available to reporting companies.