Most businesses now have until January 1, 2025 to file their Beneficial Ownership Information to the Financial Crimes Enforcement Network (FinCEN).
What is the Corporate Transparency Act?
The Corporate Transparency Act (CTA) took effect January 1, 2024 requiring certain companies to submit beneficial ownership information reports (BOI Reports) to FinCEN. Beneficial ownership refers to individuals who ultimately own or control a company, either directly or indirectly, and either exercise “substantial control” over the company or own and control at least 25% of the company’s ownership interests.
What is the Corporate Transparency Act? The CTA was enacted in 2021 to combat illicit activity including tax fraud, money laundering, and financing for terrorism by capturing more ownership information for specific U.S. businesses operating in or accessing the country’s market.
Credit: U.S. Chamber of Commerce
Important BOI Deadlines
Here is a summary of the deadlines depending on when your business was founded:
“A reporting company created or registered to do business before January 1, 2024, will have until January 1, 2025, to file its initial beneficial ownership information report.
A reporting company created or registered on or after January 1, 2024, and before January 1, 2025, will have 90 calendar days after receiving notice of the company’s creation or registration to file its initial BOI report. This 90-calendar day deadline runs from the time the company receives actual notice that its creation or registration is effective, or after a secretary of state or similar office first provides public notice of its creation or registration, whichever is earlier.
Reporting companies created or registered on or after January 1, 2025, will have 30 calendar days (from actual or public notice that the company’s creation or registration is effective) to file their initial BOI reports with FinCEN.”
BOI Exemptions:
A select few organizations are not required to report to FinCEN at this time:
Credit: FinCEN
If your company does not do business in the U.S., you do not need to file a BOI.
Accounting firms, insurance companies, public utility companies, credit unions, banks and inactive entities are not required to file a BOI at this time. Here is a list of other company exclusions:
Credit: FinCEN
More Information:
FinCEN began accepting beneficial ownership information reports on January 1, 2024 and as of today, there is no fee associated with submitting your report. However, you want to make sure you have all of the appropriate documentation at hand when filing your BOI:
- Full legal name of beneficiary or beneficiaries
- Complete current address of beneficiary or beneficiaries
- Photo of driver’s license, passport or Social Security card for beneficiaries
- Date of birth of beneficiaries
Note: Reporting can be completed through the FinCEN website. If you receive a letter in the mail, it may be fraudulent. Consult the FinCEN website or your advisor.
