Nexus 2022 Preview: Expecting Disruption from the US Corporate Transparency Act

As a human race, we are resilient. The Covid-19 pandemic gave us a chance to practice resiliency, reinvention, innovation and adaptation. We’ve seen several industries take a big hit, but others, such as the digital technology industry, are flourishing even more than before. Tech is the future, and despite the challenges, such as war and disease, the future looks good.

*Gabriela Smith, Managing Attorney at The Smith Law Group and Counsel at Klemchuk*

Covid-19 was a game changer that launched a sprint to create solutions for a new economy, a new world that took form practically overnight. The revolution started with the pandemic, but even when it’s gone, or nearly gone, there won’t be a sudden end to these radical turns. American businesses will face new challenges, such as the Corporate Transparency Act (CTA) that looms in the horizon.

Passed by Congress in 2021, the CTA would require companies -domestic and foreign- to file information about themselves and the people behind their formation, ownership and opperation. A violation of the CTA could warrant criminal fines of up to US$250,000 or even prison time. The new requirements are expected to take effect in late 2022 or early 2023.

During the pandemic, we witnessed technology bringing people together in spite of the distancing forced by the virus, with a mass of new users benefiting from these solutions. What does this mean? To me, it means that if you want to thrive, you have to continue to innovate, evolve and regenerate.

Nexus is the place where the nearshore industry thrives. I’ve followed the conference for many years, been a speaker before and met many fine companies and businesses. I’ve formed long-term friendships and relationships along the way and learned a great deal of things. I’ve seen Nexus evolve, adjust and deliver the best in the industry and the cutting edge on nearshore’s state of affairs.

This year is no different. I am excited to be a speaker at Nexus once again.

What You’ll Hear from Me at Nexus 2022

This time, I’ll bring up the biggest game-changing topic in American corporate law: the CTA. The CTA is the first statute of its kind, where the federal government gets involved in the internal affairs of certain private US companies. Yes, you read that right.

At Nexus, I’ll discuss the CTA and its particular applicability to nearshore companies seeking to do business in the US. Join me, and be prepared to learn about this new legal requirement and the radical changes it could drop on the industry.