Business Owners: Have You Filed Your Beneficial Ownership Information Report Yet?

In 2021, the Corporate Transparency Act was passed, requiring most corporations and LLCs to file information about their “beneficial owners” with the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of Treasury. 

The filing requirements were delayed for three years while the regulations were written and finalized.  Now the law is taking effect.

Starting on January 1, 2024, newly formed or registered reporting companies in the U.S. will have 90 days to report BOI, certain entity information about the reporting company and company applicant information to FinCEN.

Existing reporting companies will have until January 1, 2025 to provide company and beneficial owner information, but they will not have to provide information on the people who formed the companies (company applicants). 

All reporting companies have an ongoing obligation to submit updates for changes in any filed information within 30 days of the change. 

If you don’t report this information, you could be liable for serious civil or criminal penalties, including thousands of dollars in fines or a prison sentence. The penalties for noncompliance include:

• Assessment of a $500-per-day fine every day the violation continues (up to $10,000).

• Up to a two-year prison sentence.

  
  

Legal Direction is able to assist small business owners determine if they are a reporting entity and assist in making these required filings.

Here is the Small Entity Compliance Guide  from FinCEN.