The Corporate Transparency Act (CTA), effective January 1, 2024, has reshaped the regulatory landscape for small businesses in the U.S., and law firms are not exempt from its impact. While aimed at curbing illicit finance, the CTA for law firms introduces new responsibilities, raises ethical questions, and brings substantial penalties for non-compliance. Let us unpack what the CTA is, why it exists, the controversies it has sparked, and what it means for attorneys and their clients.
