Corporate Transparency Act Takes Effect

Family offices may need to update some of their practices to comply with the Corporate Transparency Act, which took effect on January 1.

“Family offices are used to operating in lightly regulated environments, and now they will potentially have to disclose their beneficial owners,” says Nathan D. Imfeld, senior counsel at Foley & Lardner LLP in Milwaukee.

Whether a family office gets an exemption will depend on its structure.

“It’s almost exclusively an issue for stand-alone family offices where there is no operating business anymore — perhaps the family had a legacy operating business and sold it, and now the family office is the vehicle for managing the family’s wealth,” Imfeld says. “A family office with a lot of different LLCs in the U.S., or especially those using foreign jurisdictions or sophisticated investment vehicles, may be affected.”

- Advertisement -

A number of law firms and publications have published detailed information on the CTA:

About the Author

Margaret Steen

Margaret Steen is the editor of FO Pro, The Family Office Professional. Based in Silicon Valley, she has written for Family Business Magazine for more than 15 years.


Related Articles

FAMILY OFFICE + FAMILY BUSINESS

Sign up for FO PRO: The Family Office Professional. FO PRO connects family office leadership with the family.