The Corporate Transparency Act (CTA) was a law that required businesses to report their owners to the government. It was meant to stop illegal activities like money laundering. But now, the rules have changed.
U.S. businesses no longer need to report
On March 2, 2025, the U.S. Treasury Department announced that U.S. businesses no longer have to follow the CTA’s reporting rules. Only foreign businesses operating in the U.S. will need to report their owners. This change makes things easier for small businesses in the U.S. but still keeps an eye on foreign companies.
New rules will focus on foreign companies
The Treasury Department plans to create a rule requiring only foreign businesses to follow the CTA. They say this will reduce extra paperwork for U.S. businesses while keeping financial records transparent. Even though U.S. companies are off the hook for now, the government will still work to prevent financial crimes.
How businesses feel about this change
Small business owners are happy about this decision because the CTA’s rules would have added more work for them. Without the need to create these reports, they can focus on running their businesses. However, some groups worry that changing the CTA makes it easier for bad actors to hide illegal financial activities.
Keep an eye out for future changes
Although U.S. businesses no longer have to report under the CTA, the government could change the rules again. Business owners should stay updated on any new announcements from the Treasury Department to ensure they comply with any future regulations.