Beneficial Ownership Information (BOI) Reporting

Do you own a small business with fewer than 20 employees? If you do, there’s an important new requirement you need to be aware of. Starting on January 1, 2024, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) is enforcing a new requirement imposed by the Corporate Transparency Act (CTA), which mandates that limited liability companies (LLCs), corporations, and other similar entities report information about their beneficial owners to the U.S. government. Failure to comply with this requirement can result in significant penalties.

Who Needs to Report

This reporting requirement applies to most businesses, including LLCs and corporations. However, some organizations, such as 501(c)(3) tax-exempt entities, are exempt from these reporting requirements.

The Reporting Process

The process of reporting beneficial ownership information is straightforward, secure, and free of charge. Reporting companies, which are businesses required to comply with this law, have specific deadlines for their initial reports:

• Existing Companies: Businesses created or registered to operate in the United States before January 1, 2024, must file their initial reports by January 1, 2025.
• Newly Created or Registered Companies: Companies established or registered in the United States in 2024 have 90 calendar days from the date they receive official notice or public notice that their registration is effective to file their initial report.

How often do I have to report?

It’s important to note that beneficial ownership information reporting is not an annual requirement. You only need to submit a report once unless you need to update or correct the information provided.

What information is required?

When filing a report, reporting companies must provide the following information about each beneficial owner:

• Name
• Date of Birth
• Address
• The identifying number and issuer, which can be a non-expired U.S. driver’s license, a non-expired U.S. passport, or a non-expired identification document issued by a State (including a U.S. territory or possession), local government, or Indian tribe. If none of these documents exist, a non-expired foreign passport can be used, and an image of the document must also be submitted.

Additionally, the reporting company must provide certain information about itself, including its name(s) and address. Companies created on or after January 1, 2024, are also required to submit information about the individuals who formed the company, known as “company applicants.”

Need more info?

You can visit the official FinCEN website at www.fincen.gov/boi if you need more information or have questions.

Ready to file your report?

To file your report, use the button below or use the online portal at https://boiefiling.fincen.gov/.

Ensuring compliance with the Corporate Transparency Act is crucial for your business to avoid penalties and legal issues. Stay informed and take the necessary steps to fulfill your reporting obligations.