Michael Thomason Quoted in BBJ on Upcoming Corporate Transparency Act
Bradley partner Michael Thomason was quoted in the Birmingham Business Journal on the upcoming Corporate Transparency Act (CTA). This legislation will require business owners to share their driver’s license numbers and other personal information with the federal government.
Certain companies will be exempt, but Thomason notes even exempt companies may still have to comply when forming LLCs or other small entities for specific projects.
Thomason said companies should designate someone to be responsible for ensuring CTA compliance, among other considerations. “On the governance side, I think we’re all working to make sure we’ve got the right provisions, and updating our operating agreements, updating corporate governance documents, and that’s an evolving process,” he said.
Thomason explained that it’s also important to include in documents affirmative agreements from members and shareholders to provide required information. “It’s helpful to have, in the governing documents, an agreement of the owners to provide information that pertains to themselves and their beneficial ownership chain, just to make sure the company has a process and a legal mechanism in which they can obtain that information,” he said.
The full article, “New law could force business owners to share personal information,” was published by the BBJ on December 1, 2023. (login required)