Do you own 25% or more of a practice operating as an S corporation, C corporation, limited liability company (LLC), limited partnership (LP), or other business entity? Do you own 25% or more of an LLC or LP that owns real estate (including your office building) or operates a side business? If so, you’re one of the 32 million small businesses that must prepare for the new filing requirements imposed by the Corporate Transparency Act (CTA) or face stiff penalties.

Understanding the CTA

Congress enacted the CTA in 2021 to help prevent the use of anonymous shell companies for money laundering, tax evasion, and other illegal purposes. Currently, most states allow corporations, LLCs, FLPs, and other business entities to be established without revealing the identities of the true owners. However, the CTA puts an end to that.