The Corporate Transparency Act (“CTA”) (31 U.S.C. § 5336) has done more to confuse small business owners than it has done to achieve its goal of cracking down on crimes. Ever since the CTA was enacted by Congress on January 1, 2021, as part of the National Defense Authorization Act and went into effect of January 1, 2024, it has been a legal tennis match of whether or not companies have to follow it. The purpose of the CTA was to help prevent and combat money laundering, terrorist financing, corruption, and tax fraud through shell companies, thereby preventing business owners from hiding or benefiting from owning U.S. companies and engaging in illegal operations.
