Welcome to EntityKeeper’s latest content round-up, where we gather insightful thought leadership to keep you informed! We explore best practices from our own library, as well as industry resources including Forbes and EY, shedding light on emerging trends and strategies for legal entity management and compliance. Keep reading to learn more about what was trending in the first quarter of 2024 for EntityKeeper!
1. Checklist: 6 Signs You Need A Full Service Partner for Entity Management & Compliance
This checklist identifies six key indicators that signal the need for a full-service partner in entity management and compliance. From grappling with complex regulatory requirements to struggling with outdated systems, this tool equips businesses with the strategies to assess their entity management needs effectively and take action to streamline back-office tasks, create processes that enable business growth, and ensure ongoing compliance.
2. Navigating the Corporate Transparency Act: A Roadmap to Proactive Compliance
This article discusses key components of the Corporate Transparency Act (CTA) . Effective from January 1, 2021, the CTA aims to enhance transparency by requiring entities to disclose beneficial ownership information to prevent money laundering. Key points include distinguishing between beneficial owners and company applicants, required information for reporting, recent requirement changes, and strategies for CTA compliance. The blog also outlines five steps for compliance readiness and highlights the role of technology in simplifying compliance efforts. To learn more, watch the related on-demand webinar here!
3. Trends Driving the Need for Entity Management Solutions
Today, four trends are driving the need for entity management solutions, and this blog explores each of them in depth. First, compliance with evolving regulations, exemplified by laws like the Corporate Transparency Act, mandates increased transparency and accountability, which can be facilitated by centralized entity management platforms. Second, the imperative to achieve more with fewer resources, particularly in back-office operations, drives the adoption of solutions that streamline administrative tasks and optimize efficiency. Third, the escalating importance of risk management and data security highlights the vulnerability of traditional methods like Excel spreadsheets and emphasizes the need for secure entity management systems. Lastly, the accelerating pace of business necessitates swift decision-making and collaboration, facilitated by a single source of truth provided by entity management solutions.
4. They’re Here Now: Corporate Transparency Act Reporting Requirements
This blog from Forbes discusses the implementation of the CTA, requiring small business entities, including limited liability companies, to report information on their management and ownership to the United States Treasury Department. Existing companies must file reports by the end of 2024, while new companies must report within 90 days of establishment. The filing process involves disclosing individuals with substantial control or at least 25% ownership, along with their home addresses. However, the law has also spurred fraudulent activities, such as phishing scams. Additionally, some states, like New York, have enacted similar transparency requirements. While the intention is to increase transparency, there’s speculation about the efficacy of these measures and potential evasion tactics by criminals. Despite some challenges with the online filing system, compliance is straightforward for companies with simple ownership structures (especially with the help of a solution like EntityKeeper).
5. Can Rethinking Legal Entity Management Help General Counsel Seize New Opportunities?
This blog from EY emphasizes the importance of prioritizing legal entity management to ensure readiness for deals in 2024 and beyond.Businesses are increasingly focusing on transactions such as joint ventures, strategic alliances, and divestments, necessitating agility in managing legal entities. Challenges in legal entity management are outlined, including time spent on repetitive tasks and the use of multiple providers. Failure to prioritize entity compliance can lead to risks and hinder deal readiness, as illustrated by a multinational’s struggle to update subsidiary records. Ultimately, reframing legal entity management with the right people, processes, and technology can enhance compliance in a rapidly evolving market.
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