What’s new?

Fund Managers can now use Carta to complete their CTA BOIR submissions to FinCEN with our CTA reporting tool.  

What’s important about this change?

The Corporate Transparency Act (CTA) requires certain business entities to submit a beneficial ownership information report (BOIR) to FinCEN. We’ve made it easy to submit this report with our CTA reporting tool.

Our tool uses information already on Carta to pre-populate required beneficial ownership information, saving fund managers time when filing. Plus, fund managers can rely on our reporting tool to understand the reporting deadline for each of their entities. 

How does it work?

Fund Managers can go to the CTA Reporting tab within the Tools & Services navigation menu to access Carta’s CTA feature. Upon navigating to CTA Reporting, the Fund Manager can select the entity they are filing a BOIR for.

If the reporting entity is not exempt, they should proceed with filling out the three sections of the form: Company Information, Beneficial Owners, and Company Applicants. 

The Company Information is prefilled for the entity including the legal entity name, US business address, and tax identification number. Review and confirm that all prefilled information is current and accurate.

Each Beneficial Owner’s name and address  will be prefilled, if the information is available, for any partner within the entity account who is an individual that has subscribed for 25% or more of the entity’s total commitments. Review details and Beneficial Owner status for all prefilled information to confirm it is current and accurate, or make any corrections needed.

Control persons and indirect owners of 25% or more are not prefilled, so you will also need to add any control persons or individuals who indirectly own 25% or more as additional Beneficial Owners. 

The Company Applicants section is only required for entities incorporated or formed on or after January 1, 2024. Reporting entities that fall into this category will need to provide the company applicant information.

Last, review the information and submit to FinCEN. You’ll get a confirmation screen to let you know the report has been filed.

Carta does not determine the exemption status of the reporting entity. Confirm with your legal team on your entity’s exemption status. For more information on FinCEN exemptions, refer to the FinCEN BOIR frequently asked questions.

How do I learn more?

For more information on the new CTA Reporting feature, reach out to your Account Director. For additional information on the new FinCEN CTA requirement, read our blog post on How Corporate Transparency Act impacts private funds.