Are Governmental Agencies Exempt From The Corporate Transparency Act?

There are 23 separate exemptions from the CTA's beneficial ownership reporting requirement. The exemptions are listed in order in FinCEN's Final Rule at 31 CFR 1010.380 and take effect on January 1, 2024.

CTA Exemptions Generally

In general, the CTA exempts companies that already report their beneficial ownership to the U.S. government under a separate legal framework. FinCEN's Final Rule addresses each exemption separately in subsection 1010.380(c)(2).

Subsection 1010.380(c)(2)(ii) of the Final Rule exempts:

"Governmental authority. Any entity that:

(A) Is established under the laws of the United States, an Indian tribe, a State, or a political subdivision of a State, or under an interstate compact between two or more States; and

(B) Exercises governmental authority on behalf of the United States or any such Indian tribe, State, or political subdivision."

This exemption is one of the less complex exemptions provided in the Final Rule.

The exemption relieves from the CTA's filing requirements:

• Any organization or agency of the U.S. federal government;
• Any organization or agency of any U.S. state government;
• Any political subdivision of a state;
• Any organization formed under an interstate company between two or more states; and
• Any organization or agency of an Indian tribe.