What is Corporate Transparency Act (CTA)?
2021 federal law requiring beneficial ownership disclosure to FinCEN via BOI reports. Upheld as constitutional in Dec 2025, but U.S.-formed companies are exempt from filing under the March 2025 interim rule (as of May 2026, interim and subject to change).
Also known as: CTA, Corporate Transparency Act
The Corporate Transparency Act (CTA) is a 2021 U.S. federal law that requires many companies to disclose their beneficial owners to FinCEN through a BOI report. Its goal is to make it harder to use anonymous shell companies for money laundering and fraud.
Statute vs. rule
- The CTA is the law on the books (enacted 2021)
- The BOI report is the filing mechanism the law calls for
- FinCEN writes the rules defining who must file and when
Understanding that split explains why the requirement can flip while the statute remains.
Timeline (short)
| When | What happened |
|---|---|
| Jan 2024 | BOI reporting goes live for covered companies |
| 2024–early 2025 | Court injunctions pause enforcement |
| Mar 2025 | FinCEN interim final rule removes U.S.-formed entities from reporting |
| Dec 2025 | 11th Circuit upholds CTA constitutionality |
Current status (May 2026)
The statute is alive; the U.S. filing requirement is paused. FinCEN's March 2025 interim final rule limits "reporting companies" to foreign-formed entities registering in the U.S.
As of May 2026, this is an interim rule, not finalized, and subject to change — a future final rule could reopen domestic filing.
Why it matters for privacy
When BOI reporting applies to U.S. companies, state-level anonymity is only half the picture. When it does not, WY/NM/DE public-record privacy regains its full value — without making you invisible to banks or the IRS.
Key takeaway
Track the CTA separately from day-to-day formation privacy. Full dated explainer: BOI reporting hub.
Source: Federal Register 2025-05199
Related Terms
Anonymous LLC
A limited liability company formed in a state that does not require member or manager names in public filings, combined with a professional registered agent as the public address — so the real owner's identity is absent from the state's public record from day one.
Beneficial Owner
The actual human who owns or controls a company — typically anyone with 25%+ ownership or substantial control — regardless of whose name appears on public filings. Central to BOI reporting and bank KYC.
Beneficial Ownership Information (BOI)
Data identifying the real individuals who ultimately own or control a legal entity — required by FinCEN under the Corporate Transparency Act (CTA) for some entities; US-formed companies are exempt under FinCEN's March 2025 interim final rule (as of May 2026, interim and subject to change).
BOI Report
A FinCEN filing under the Corporate Transparency Act disclosing who owns or controls a company. As of May 2026, under the March 2025 interim final rule, U.S.-formed LLCs and their U.S. owners are not required to file — interim, not finalized, subject to change.
Have more questions?
Use our guided flow to get the right next privacy step for Corporate Transparency Act (CTA).
Open Guided Flow