What is the Corporate Transparency Act?
The Corporate Transparency Act, or CTA, is a federal law that took effect in 2024 to fight money laundering and terrorism financing. It requires certain organizations, including many HOAs structured as corporations, to report information about who actually controls them to the federal government.
Why does the Corporate Transparency Act matter?
This law is the reason BOI reporting exists at all, and it’s easy for a volunteer board to miss entirely since nothing about running a neighborhood association feels like it should trigger federal anti-money-laundering rules. Ignoring it isn’t a safe bet, though; the penalties are real.
When You’ll Run Into This
This tends to surface the same way BOI reporting does, when a board’s accountant or attorney flags it, often well after the association should have already filed. It’s worth checking your HOA’s status now.
