Yes. Some states do not ask for identity of business owners or members of LLCs at the time of business registration. However, effective January 1, 2024, identities of owners of private companies have to be reported to the federal government in a separate filing as part of a Corporate Transparency Act requirement. The information will be maintained by FinCEN with access limited to federal agencies, state agencies with a court order, and financial institutions with the consent of the company. FinCEN is working on an additional rule regarding access to these records. (Posted, November 7, 2022).
A very good overview of the Act can be found here.
UPDATE:
UPDATE:
On December 3, 2024, the U.S. District Court for the Eastern District of Texas issued a preliminary injunction, effectively halting the enforcement of the Corporate Transparency Act (CTA) across the country. The CTA, which took effect on January 1, 2024, mandates that the U.S. companies disclose information about their beneficial owners—individuals with ultimate ownership or control of a business—to the Financial Crimes Enforcement Network (FinCEN) under the Department of the Treasury.
The lawsuit, filed by six plaintiffs in May 2024, argued that the CTA exceeds Congress's constitutional authority. Judge Amos L. Mazzant ruled that the plaintiffs demonstrated a strong likelihood of success on their claims, leading the court to impose a nationwide injunction. As a result, reporting companies are not required to meet the January 1, 2025, deadline for submitting beneficial ownership information.
This injunction is a temporary measure and not a final determination on the CTA's validity. Enforcement could resume if the ruling is overturned on appeal or the government ultimately prevails in court. Stay tuned... this is not the end to the reporting requirement.
Our firm maintains an anti-money laundering policy and performs thorough due diligence on each shareholder, officer, member, or owner of a to-be registered business.
