New Legislation Effective January 1, 2024: Corporate Transparency Act
January 1, 2024, the federal Corporate Transparency Act (“CTA”) went into effect. This new legislation effects a large number of entities. The purpose of the CTA is to create a national database of companies in the United States that identifies the human beings behind each of the companies. The law is intended to combat money laundering, terrorism, tax evasion, and other crimes.
The CTA applies to almost all limited liability companies (LLCs), corporations, limited partnerships (LPs), and other closely held entities. An entity governed by the CTA will be required to file certain reports with the federal government regarding the identities of those individuals who are “beneficial owners” of the entity. There are 23 categories of exempted entities, including charities, large operating companies (20 or more employees and $5 million or more in revenues), and certain types of other entities that are already highly regulated (e.g., banks, public companies, insurance companies, etc.).
The reports required by the CTA are filed online at https://www.fincen.gov/boi. Companies that must comply with the CTA must meet certain deadlines in filing their reports. Companies formed before January 1, 2024 have until January 1, 2025 to file their initial reports. Companies formed on or after January 1, 2024 have ninety (90) days from the date of formation to file their initial reports. Companies formed on or after January 1, 2025 have thirty (30) days from the date of formation to file their initial reports. When any information about the reporting company or one of its Beneficial Owner changes, the entity must file an updated report within thirty (30) calendar days of when the change occurs.
The CTA provides for both civil and criminal penalties for violation of the law. Willful failure to report complete or updated information and willful submission of false or fraudulent information can result in criminal penalties, including a fine of up to $10,000 and imprisonment for up to two years.
To determine if your entity will be affected by this new legislation, please contact a lawyer for individualized advice on what you need to do to be compliant with the new legislation. Please feel free to reach out to one of Dodson Parker Behm and Capparella’s experienced business services team members who are ready to walk you through this process.
Popular 3D/4D Ultrasounds Regulated Under New Tennessee Law
The last few years have seen a rapid increase in the availability of so-called “3D” or “4D” ultrasounds. These procedures provide keepsake imaging for expectant parents and are generally performed outside of traditional doctor’s offices–they can even be done in malls! The rising popularity of these fetal scans seems to continue, despite guidance from the American College of Obstetricians and Gynecologists and the FDA urging caution. One concern has been the lack of oversight with respect to the use of ultrasound equipment to monitor effects upon maternal and fetal tissue.
In Tennessee, the General Assembly has stepped in to provide regulation of the non-clinical ultrasound industry. The “Tennessee Ultrasound Sonographer Practice Act,” became effective January 1, 2019. It creates a licensing procedure with minimum training standards. The impact on these businesses remains to be seen, although there is a 12-month grace period to allow technicians to obtain licenses. One year from now, however, all 3D/4D ultrasounds in the state must be performed by licensed professionals.
Legislative (Non)Update: Legislative Lack of Interest
Pending legislation can often be a harbinger of change, even if it doesn’t pass the first time around. This legislative session has seen several bills that, while unsuccessful this time, might still be of interest to legislators and lawyers next session…
Legislative Update
The General Assembly is back in session and that means that more than a few items of interest will be considered in the next few months. Here are some matters under consideration that will impact the legal system and the ability of Tennesseans to have access to justice. read more
Big Changes to Appellate Procedure in Tennessee
Big changes are coming to Tennessee’s appellate courts in 2017. While news of the move to electronic filing is not new, the recently filed proposed amendments to the Tennessee Rules of Appellate Procedure have some significant changes to make way for the change…. read more
Legislative Summary: The Long and the Tort of It
Here are a few items of interest to the tort law practitioner stemming from the Tennessee General Assembly’s last session… read more
Legislative Update: Judicial Selection in Tennessee
Following the adoption by Tennessee voters in 2014 of a constitutional amendment giving the legislature confirmation power over the governor’s judicial appointees, the General Assembly has been tasked with determining how the legislature will exercise this authority. This issue was not resolved during the 2015 legislative session, which meant that the judges appointed in the interim were automatically deemed approved once sixty days elapsed from the date of appointment.
For the 2016 session, a Conference Committee on Judicial Confirmation was appointed to recommend a plan (SB 1/HB 142). The Committee met four times and, on January 20, 2016, adopted a report with a proposal to be considered by the full General Assembly. The Conference Committee’s proposal was adopted, voted upon by the House and Senate, and signed into law by the Governor effective January 28, 2016. read more