CTA Enforcement Suspended! What's Next for Disregarded LLCs?

[hasby2023]

Hi everyone,

Great news! The enforcement of the Corporate Transparency Act (CTA) has been suspended. Based on this, I assume the halt also applies to disregarded LLCs””please correct me if I'm wrong.

With this development, what can we expect in the coming months and years regarding privacy and compliance? Will this suspension lead to long-term changes, or is it just a temporary pause?

Looking forward to your thoughts!

 

[marioIT]

maybe https://www.offshorecorptalk.com/th...s-at-least-temporarily-suspended.46768/page-3

 

[hasby2023]

Thanks Mario, I saw that celebrating thread but i wanted to create a new discussion , a bit more structured

 

[JackofAllTrades]

hasby2023 said:
Thanks Mario, I saw that celebrating thread but i wanted to create a new discussion , a bit more structured
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CTA is dead for now. If it reappears, it will be targetting foreign contolled companies. However, trusts were exempt to begin with. If all you are doing is holding property or accounts, a trust not a LLC is the way to go in the USA. The trust can also obtain a EIN and open a bank account but can be a disregarded entity as long as it is a revocable trust.

 

[hofo]

Would a U.S. trust, in this case, provide anonymity from, for example, European authorities? And which state would be the most appropriate to establish the trust in, to do it properly?

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Hi I'm HoFo and love Internet Privacy and OffshoreCorpTalk dead:-!

 

[JackofAllTrades]

JackofAllTrades said:
CTA is dead for now. If it reappears, it will be targetting foreign contolled companies. However, trusts were exempt to begin with. If all you are doing is holding property or accounts, a trust not a LLC is the way to go in the USA. The trust can also obtain a EIN and open a bank account but can be a disregarded entity as long as it is a revocable trust.
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A trust is exempt from the CTA.

hofo said:
Would a U.S. trust, in this case, provide anonymity from, for example, European authorities? And which state would be the most appropriate to establish the trust in, to do it properly?
Click to expand...

It all depends on the use for the trust. A US trust is not registered anywhere. And a EIN is not required nor a tax return unless circumstances require it. Each US state has slightly different laws. Remember too, you have revocable and irrevocable trusts. So unless the trust was filing taxes because it generated income, no one need know. In the USA, trusts are used to hold real property and quite frequently for estate planning purposes. But a trust can literally hold any sort of property or even a legal claim. However, distributions of income from the trusts are taxable but distributions of the trust principle not taxed. You can actually draft your own trust and a notary is usually not required if you have a good idea of what you are doing.

 

[hofo]

JackofAllTrades said:
It all depends on the use for the trust. A US trust is not registered anywhere.
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I believe what you're saying, but if a trust in the U.S. isn’t registered anywhere, how would you prove that it owns a house, a boat, or other assets in the event of a lawsuit or if the tax authorities come after you?

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Hi I'm HoFo and love Internet Privacy and OffshoreCorpTalk dead:-!

 

[JackofAllTrades]

hofo said:
I believe what you're saying, but if a trust in the U.S. isn’t registered anywhere, how would you prove that it owns a house, a boat, or other assets in the event of a lawsuit or if the tax authorities come after you?
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You title the asset to the trust. The trust document is all the proof required. That is how it works in the US.

 

[plotoffshore]

JackofAllTrades said:
You title the asset to the trust. The trust document is all the proof required. That is how it works in the US.
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That's very easy for someone that looking for protecting his assets. Wonder if that works for law cases from Europe.