Sept. 12, 2022
In an article published in the Daily Report, Atlanta-based partner Jeffrey H. Perry discusses what amounts to a significant departure from centuries of precedent with the introduction of Section 6043 of the Corporate Transparency Act, wherein many private companies will soon be required to file both initial and episodic disclosure reports regarding beneficial ownership and control to the U.S. Department of the Treasury. In the article, Perry outlines what types of entities are covered, how beneficial ownership is defined, who qualifies as a company applicant, exemptions, timing of reports, information required, and penalties for non-compliance.
“Make no doubt that these rules are a striking departure from centuries of precedent. Corporations, partnerships, limited liability companies, etc., are creatures of state law with initial formation detail typically maintained by a secretary of state’s office (or equivalent),” he wrote.
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