CTA Enforcement Suspended! What’s Next for Disregarded LLCs?

[hasby2023]

Hi everyone,

Great news! The enforcement of the Corporate Transparency Act (CTA) has been suspended. Based on this, I assume the halt also applies to disregarded LLCs—please correct me if I'm wrong.

With this development, what can we expect in the coming months and years regarding privacy and compliance? Will this suspension lead to long-term changes, or is it just a temporary pause?

Looking forward to your thoughts!

 

[marioIT]

maybe https://www.offshorecorptalk.com/th...s-at-least-temporarily-suspended.46768/page-3

 

[hasby2023]

Thanks Mario, I saw that celebrating thread but i wanted to create a new discussion , a bit more structured

 

[JackofAllTrades]

Thanks Mario, I saw that celebrating thread but i wanted to create a new discussion , a bit more structured

CTA is dead for now. If it reappears, it will be targetting foreign contolled companies. However, trusts were exempt to begin with. If all you are doing is holding property or accounts, a trust not a LLC is the way to go in the USA. The trust can also obtain a EIN and open a bank account but can be a disregarded entity as long as it is a revocable trust.

 

[hofo]

Would a U.S. trust, in this case, provide anonymity from, for example, European authorities? And which state would be the most appropriate to establish the trust in, to do it properly?

 

[JackofAllTrades]

CTA is dead for now. If it reappears, it will be targetting foreign contolled companies. However, trusts were exempt to begin with. If all you are doing is holding property or accounts, a trust not a LLC is the way to go in the USA. The trust can also obtain a EIN and open a bank account but can be a disregarded entity as long as it is a revocable trust.

A trust is exempt from the CTA.

Would a U.S. trust, in this case, provide anonymity from, for example, European authorities? And which state would be the most appropriate to establish the trust in, to do it properly?

It all depends on the use for the trust. A US trust is not registered anywhere. And a EIN is not required nor a tax return unless circumstances require it. Each US state has slightly different laws. Remember too, you have revocable and irrevocable trusts. So unless the trust was filing taxes because it generated income, no one need know. In the USA, trusts are used to hold real property and quite frequently for estate planning purposes. But a trust can literally hold any sort of property or even a legal claim. However, distributions of income from the trusts are taxable but distributions of the trust principle not taxed. You can actually draft your own trust and a notary is usually not required if you have a good idea of what you are doing.