Corporate Transparency Act (CTA): Key Compliance Steps for Community and Homeowners Associations

By Christopher M. Tingey, Partner, VF Law 

Introduction to the CTA 

The Corporate Transparency Act (CTA) was adopted by Congress in 2021 and went into effect on January 1st 2024.  It is an anti-money-laundering law aimed at gathering more information about corporations and limited liability companies that operate in the United States so that the federal government can take better action to prevent money laundering and terrorist funding.   

Under the law, all corporations and limited liability companies (among other entities) in the United States must file an initial “beneficial ownership interest” report to the Treasury Department’s Financial Crimes Enforcement Network (FinCEN).  There are some exempted companies that do not have to report—I will address those below—but, by and large, every for profit and nonprofit corporation and LLC in the United States must report.  That includes all incorporated homeowners associations and condominium associations in Idaho.   

So, practically speaking, what does the statute require and what does it mean for your community association?  Well, I’m glad you asked!  Let’s dive into a primer of some basic CTA questions and answers.  Remember, this is not legal advice for your community association.  Rather, it is simply a brief, not-all-inclusive primer into the CTA.  If you have specific questions, please consult your association’s legal counsel. 

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