Corporate Transparency Act (CTA)

The Corporate Transparency Act (CTA): What Aircraft Owners and Operators Need to Know

The Corporate Transparency Act (CTA), enacted in 2021, requires certain businesses to report information about their owners to the Financial Crimes Enforcement Network (FinCEN). It applies to limited liability companies (LLCs) and other business entities, including entities that own business aircraft in an LLC, a common structure to establish leases under which companies may share aircraft and for a host of other business and tax reasons. Beneficial Ownership Information (BOI) reports from impacted entities created prior to Jan. 1, 2024, were originally due to FinCEN by Jan. 1, 2025, and reports from impacted entities created on or after Jan. 1, 2025, were due within 30 days of receiving notice that the creation was effective. However, ongoing legal action has postponed those deadlines.

CTA Raises Privacy Concerns

NBAA has raised concerns about privacy for business aircraft owners and business aircraft ownership structures.

CTA Subject to Legal Action

Two cases, Texas Top Cop Shop v. Garland and Smith v. U.S. Department of the Treasury, call into question the constitutionality of the CTA. On Jan. 23, 2025, the Supreme Court of the United States overturned a federal court’s decision in the Texas Top Cop Shop case. The federal court had determined that reporting requirements in the Corporate Transparency Act may be unconstitutional and issued a stay of the CTA deadline.

Despite the decision, a federal judge in the Smith case also issued a stay that remains in place, so the nationwide stay of the deadline continues and impacted companies are not required to complete the BOI reports. Reporting companies also are not subject to liability if they fail to file this information while the Smith order remains in force. Impacted entities may continue to submit BOI reports voluntarily.

What’s Next?

NBAA will continue to monitor this evolving situation, including related legal actions.