What is an Entity?
An Entity is a legal structure formed under the laws of a jurisdiction, such as a corporation, limited liability company (LLC), or other similar business structures. Entities are required to comply with the Corporate Transparency Act (CTA) by reporting their Beneficial Ownership Information (BOI) to the Financial Crimes Enforcement Network (FinCEN). This requirement ensures transparency in business ownership, helping to prevent the misuse of entities for illegal activities like money laundering or tax evasion.
Entities required to report under the CTA must disclose information about individuals who own or control at least 25% of the company or have significant influence over its operations. These disclosures are part of the broader regulatory framework aimed at improving transparency and accountability in corporate ownership.
