The Corporate Transparency Act is a recent law that requires businesses to be fully transparent about their activities, including the companies and trusts they use to conduct transactions. The Corporate Transparency Act was passed in order to ensure that corporate entities are being used for legitimate business purposes and not for money laundering or other illegal activities.
What is the Corporate Transparency Act?
The Corporate Transparency Act is a federal law, passed in 2019. It requires public companies to disclose certain information about their corporate structures and ownership. The intent of this law is to help investors make informed decisions about the companies in which they invest by providing them with more information about how those companies are structured and who owns them.
Why is the Corporate Transparency Act So Important to Your Business?
The act is designed to help prevent money laundering and terrorist financing, which can have devastating effects on our economy. The act requires companies to disclose the beneficial owners of the company. What is a beneficial owner?
Beneficial owners are defined as individuals who ultimately own or control a company by having significant influence over its operations, even if they do not hold shares in their own name. In some cases, this may include family members or close friends who share a common purpose (such as owning property together).
How Can You Meet the Requirements of the Corporate Transparency Act?
The Corporate Transparency Act requires that you provide a list of all entities you control, and the name and address of each entity's chief executive officer (CEO). In addition, if your company has any subsidiaries or other related companies that are not included on your annual tax return but are part of the same group as your company, then you must also submit this information.
The easiest way to meet these requirements is by using entity management software. This type of software allows users to track their entire portfolio of companies and make sure they're always compliant with regulations like those outlined in the Corporate Transparency Act
How Does Entity Management Software Help you Meet the Requirements of the Corporate Transparency Act?
How exactly does entity management software work to help you meet these legal requirements?
- Entity management software makes it easy to track the entities and related information you need.
- Entity management software can help you find the right entity for your business.
- Entity management software keeps vital information in a central and easily accessible space
Businesses can utilize entity management software to keep important information readily available and avoid any mishaps.
Entity Management Software Can Protect Your Business
Entity management software is a great way to see the big picture and make sure you're tracking all the entities and related information you need in order to meet corporate transparency act requirements.Entity management software helps you track all of your entities in one place.With this kind of visibility into their organization's structure, businesses have the tools they need at their fingertips when compliance deadlines loom near!
If you're concerned about the Corporate Transparency Act and how it affects your business, then entity management software is a great way to get started. The software will help you easily track all of the entities in your company so that you can stay compliant, and focus on growing your business. Athennian offers a free customized demo of our software. Schedule yours today.