People sitting at a desk with phones and a laptop discussing the corporate transparency act

The Corporate Transparency Act is affecting many business owners, investors and real estate owners. Here’s how:


On Jan. 1, 2024, a significant regulatory change went into effect that impacts limited liability companies (LLCs), corporations and other entities, but its reach extends beyond the typical business owner. 

The Corporate Transparency Act (CTA) requires certain businesses and related entities to report ownership information to the Financial Crimes Enforcement Network within specific timeframes—or face penalties. 

“At Vance Wealth, we recognize the importance of staying ahead of regulatory changes to protect our clients' interests. It’s our job to simplify these processes by providing clear and straightforward guidance that empowers you to make informed decisions for your business' future,” explained Wealth Advisor Tyler Tilton. “That’s why we want to draw attention to some of the lesser-known entities that could be affected.” 

The CTA requirements apply to privately held LLCs, corporations and other entities formed or registered to do business in any U.S. state or American Indian tribe for any purpose—including for estate, investment, real estate, tax, privacy or other personal planning. 

“A lot of people think they’re exempt, but if you’re an investor with an LLC—such as real estate investments in an LLC—you are required to report,” Tyler explained. 

Another example is trusts. Although many trusts used for estate planning won't need to report under these rules, details about who benefits from the trust might need to be reported if the trust is connected to a company that does need to report. This could include the creators, beneficiaries and managers of the trust. 

That being said, exemptions are available for certain highly regulated entities, as well as other entities deemed "low-risk." Additionally, tax-exempt organizations such as 501(c)(3) entities are also exempt from CTA reporting obligations. 

“The nuances of this statute can be complicated, for entrepreneurs and for people who may not necessarily consider themselves business owners,” Tyler explained. “That’s why it’s so important to stay informed about all the implications of the CTA.” 

Reporting entities have at least a year to file, but it’s essential to understand your obligations now. Entities established or registered before 2024 must submit their initial reports by Jan. 1, 2025. Those formed or registered in 2024 have a 90-day window, while entities established or registered after Jan. 1, 2025, must file within 30 days of creation or registration.

“At Vance Wealth, we remain committed to guiding our clients through evolving regulatory landscapes, ensuring compliance and safeguarding their financial interests,” Tyler shared. “Stay informed, stay proactive, and let us navigate these changes together for a secure financial future.”

If you are unsure about your obligation to report under the new CTA regulations, please contact us to learn more. To schedule your consultation, visit or contact our office at 661-775-0950.


Source: Loeb & Loeb LLP, Christina Hammervold and Alyse N. Pelavin, December 2023
Disclosures: Vance Wealth, Inc. (“Vance Wealth”) is a registered investment advisor. Advisory services are only offered to clients or prospective clients where Vance Wealth and its representatives are properly licensed or exempt from licensure. All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed.  There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such. The information provided is for educational and informational purposes only and does not constitute advice. Vance Wealth does not provide tax or legal advice. You should contact your tax advisor and/or attorney before making any decisions with tax or legal implications. Reader recognizes that any and all recommendations made by Advisor are opinions only and are derived from sources and information believed to be reliable which the Advisor cannot warrant as to accuracy. Reader agrees that Advisor shall not assume responsibility other than to render Advisor’s services in good faith.