in the name of the law  by Jonathan A. Ruybalid


Disclosures Required by New Law


Nonprofit and business leaders alike may have started to see notifications appear regarding compliance with the Corporate Transparency Act (CTA) and its reporting requirements. CTA is a federal law that applies to corpora- tions and limited liability companies formed under state law. Camps and conference centers have started to receive notification from Secre- tary of State offices, and we have been receiving inquiries about whether their organization must comply with the CTA.


The CTA (effective January 1, 2024) requires


certain legal entities such as corporations, limited liability companies, and partnerships, along with legal arrangements like trusts, to report information about (1) anyone who cre- ated the company and (2) its beneficial owners, that is, any individual who exercises substantial control over the company or owns or controls at least 25% of its ownership’s interests. The stated goal of the new law was to prevent money laundering and transfer of funds into and through legal entities of which no one knows the owners or principals of these LLCs. It is likely camp and conference center lead-


Te draſters of the CTA have taken into account the unnecessary burden that additional reporting


requirements would place on certain entities that are already regulated.


ers may read the notices and think they may fall into one of these two categories. Though that may be true, the drafters of the CTA have taken into account the unneces- sary burden that additional reporting requirements would place on certain entities that are already regulated. Due to this, the CTA lists several categories of entities that are exempt from its reporting requirements. Included in this is any organiza- tion described in section 501(c) of the Internal Revenue Code (IRC) and qualify for tax- exemption under the IRC. Tax-exempt organizations


should find this a relief. It does raise a question for tax-exempt


64


www.ccca.org May/June 2024


Photo courtesy of Camp Cho-Yeh


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68