Carta has noted that on January 23, 2025, the Supreme Court made a ruling that allows the Financial Crimes Enforcement Network (FinCEN) to continue enforcing the Corporate Transparency Act’s (CTA) beneficial ownership information report (BOIR) filing requirements.
Carta pointed out that FinCEN has since issued guidance stating that reporting companies are currently not required to file BOIRs.
Carta also mentioned in a blog post that the CTA, which went into effect on January 1, 2024, requires nearly all newly incorporated companies in the United States to submit an initial filing regarding their beneficial ownership within 90 days of incorporation.
Companies must also make mandatory updates as their ownership and governance structures evolve.
As explained in the update shared by Carta, these filings are then submitted to FinCEN, a division of the U.S. Treasury Department.
The primary goal of the CTA is to prevent money laundering by identifying corporate shells used for illicit purposes.
However, Carta said that millions of legitimate businesses will also be subject to the CTA’s disclosure regime.
In the first year of the law’s implementation, only newly incorporated companies will be required to comply, which means that smaller businesses with limited resources will be the first to file.
To assist founders in complying with the CTA, Carta is offering a free CTA compliance solution.
According to the update, this particular solution is also embedded in Carta’s Launch plan, allowing startups to use it even if they have not raised any financing.
Carta’s CTA compliance solution is designed to be “user-friendly,” leveraging ownership data collected during the Launch onboarding process to populate the CTA filing.
Through a connected ecosystem of tools, Carta links together the key players in private equity and venture — from investors and LPs to their portfolio companies.
Carta’s fund administration platform supports nearly “7,000 funds and SPVs, and represents nearly $130B in assets under management.”
“Trusted” by more than 40,000 companies, Carta helps private businesses in over 160 countries “manage their cap tables, valuations, taxes, equity programs, compensation, and more.”
Today, Carta claims that it is setting a new standard “as the end-to-end platform connecting private capital.”
Their fund management platform “integrates a suite of tools and insights purpose-built to support the strategic impact of the fund CFO.”