If you are an adult performer who got an LLC because of the unusual regulations that came up a few years ago in California, you need to know about a big change that could expose your private and personal information. This means making your legal name, home address, email address, phone number, etc. public information!!

As we approach January 1, 2024, a significant regulatory shift looms on the horizon for businesses across the United States. The Corporate Transparency Act (CTA), part of a broader effort to enhance transparency in the corporate sector, is set to come into effect, bringing with it new reporting obligations that could significantly impact both foreign-owned and domestic small businesses. This article aims to demystify the CTA and provide essential guidance on what your business needs to do to stay compliant.

The Corporate Transparency Act (CTA) represents a concerted effort by the federal government to tackle the opaque nature of corporate ownership. By requiring companies to disclose beneficial ownership information, the Act seeks to prevent illicit activities and increase accountability in the business world.

Objective: The primary goal is to enhance transparency, especially targeting foreign-owned entities, but it also impacts domestic small businesses. And yes that means adult performers who registered an LLC.

Reporting Requirements: Businesses are mandated to report details about individuals who directly or indirectly own, control, or profit from the company to the Financial Crimes Enforcement Network.

Definition of Beneficial Owners: This extends beyond the names on legal documents. It includes individuals who have significant control or economic stakes in the business.

The penalties for failing to comply with the CTA are substantial. Non-compliant businesses face a daily fine of $500, with the possibility of additional penalties reaching up to $10,000.

Companies established before January 1, 2024, have until January 1, 2025, to submit their reports, and any alterations in beneficial ownership must be reported within 30 days.

Here’s the problem. This new rule may cause your personal information to become part of public records, and once that information is out there, it’s out there.

I’m not just talking about your real name, I mean your home address, etc. This is a big deal, and it’s why you need to speak to an attorney immediately if you have an LLC.

I hate that certain lawyers in our industry use scare tactics to try and drum up new business, but in this case, you might need to be worried. You don’t want to unknowingly expose your legal name and home address to the world because, again, once that information is made public, there is no taking it back.

So please take a moment to email or call the attorney who helped you form your LLC and find out what information about you is attached to that LLC. Talk to them about ways to lessen the risk of your personal information being exposed. Talk to them about using an alternative address or other things that can help protect you.

Don’t hesitate. Do this ASAP!!

The deadline is January 1, 2024, which is just days away.

If you don’t have an industry attorney, talk to Jim Felton. He works for the APAG Union, so he’s well-versed in dealing with adult performers. You can find him on Twitter (X) at @jf111163.