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New Federal Reporting Requirement for Beneficial Ownership Information (BOI)

by | Feb 1, 2024 | 0 comments

Effective January 1, 2024, many companies in the United States must now report information about their owners—the individuals who  own or control the company to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury. Filing is simple, secure. Beneficial ownership information reporting is not an annual requirement. Unless a company needs to update or correct information, a report only needs to be submitted once. Be sure to review FinCEN’s Small Entity Compliance Guide, which provides information to help small businesses comply with this reporting requirement. Who Has to Report? Companies required to report are called reporting companies. Reporting companies may have to obtain information from their beneficial owners and report that information to FinCEN. Your company may need to report information about its beneficial owners if it is: 1. a corporation, a limited liability company (LLC), or was otherwise created in the United States by filing a document with a secretary of state or any similar office under the law of a state or Indian tribe; or 2. a foreign company and was registered to do business in any U.S. state or Indian tribe by such a filing. Who Does Not Have to Report? Twenty-three types of entities are exempt from beneficial ownership information reporting requirements, including publicly traded companies, nonprofits, and certain large operating companies. FinCEN’s Small Entity Compliance Guide includes checklists for each of the 23 exemptions that may help determine whether your company qualifies for an exemption. Please review Chapter 1.2 of the Guide for more information. How Do I Report? Reporting companies. The system provides a confirmation of receipt once a completed report is filed with FinCEN. When Do I Report? FinCEN began accepting reports on January 1, 2024. • If your company was created or registered prior to January 1, 2024, you will have until January 1, 2025 to report BOI. • If your company is created or registered in 2024, you must report BOI within 90 calendar days after receiving actual or public notice that your company’s creation or registration is effective, whichever is earlier. • If your company is created or registered on or after January 1, 2025, you must file BOI within 30 calendar days after receiving actual or public notice that its creation or registration is effective. • Any updates or corrections to beneficial ownership information that you previously filed with FinCEN must be submitted within 30 days.Where Can I Learn More?

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