LEARN ABOUT THE BENEFICIAL OWNERSHIP INFORMATION REPORTING (BOIR) REQUIREMENTS OF THE CORPORATE TRANSPARENCY ACT AND WHAT WE RECOMMEND YOU DO ASAP TO AVOID HUGE PENALTIES

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WHAT IS THE CORPORATE TRANSPARENCY ACT?

A new rule, known as company Beneficial Ownership Information Reporting (BOIR), took effect on January 1, 2024, and small business owners are not exempt. A governmental organization known as FinCEN (the Financial Crimes Enforcement Network) has been engaged by the US Treasury Dept to administer this new rule).

Depending on your business structure, you must report Beneficial Ownership Information (BOI) - who owns and controls your company - to the U.S. government. There are HUGE $$$ penalties and potentially even jail time if you fail to comply.

Scroll down to learn if the beneficial ownership information reporting rules apply to your business.

WHAT Is Beneficial Ownership Information (BOI) ?

Beneficial Ownership Information (BOI) refers to identifying information about the individuals who directly or indirectly own or control a company.

WHERE Can You Learn More Information About The BOI Reporting Requirements Of The CTA?

FinCEN (the treasury dept entity administering the CTA) will continue to provide guidance, information, and updates related to the BOI reporting requirements on its BOI webpage, www.fincen.gov/boi.

Does FINCEN charge you a fee for filing your BOI reports?

FINCEN will NOT be charging a fee to file the reports to FINCEN.

If you hire a 3rd party to assist you in properly filing your BOI reports, then that 3rd party may charge you a fee.

How will you report your company's beneficial ownership information?

If you are required to report your company’s beneficial ownership information to FinCEN, you will do so electronically through a secure filing system available via FinCEN’s website. (We can do this for you)

Who can file a BOI report on behalf of a reporting company, and what information will be collected on filers?

Anyone whom the reporting company authorizes to act on its behalf—such as an employee, owner, or third-party service provider—may file a BOI report on the reporting company’s behalf.

When submitting the BOI report, individual filers should be prepared to provide basic contact information about themselves, including their name and email address or phone number.

WHY do companies have to report Beneficial Ownership Information to the U.S Department of the Treasury?

In 2021, Congress passed the Corporate Transparency Act (the CTA) on a bipartisan basis. This law creates a new beneficial ownership information reporting requirement as part of the U.S. government’s efforts to make it harder for bad actors to hide or benefit from their ill-gotten gains through shell companies or other opaque ownership structures.

WHEN do I need to report my company’s beneficial ownership information to FinCEN?

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. (We recommend you don't wait for the end of the year to file)

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. (Here there is no option to wait until the end of the year to file)

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. (Again, there is no option to wait, and the filing period is even shorter than for 2024)

Under the Corporate Transparency Act (CTA), WHO can access beneficial
ownership information once filed?

FinCEN (the treasury dept entity administering the CTA) will permit Federal, State, local, and Tribal officials, as well as certain foreign officials who submit a request through a U.S. federal government agency, to obtain
beneficial ownership information for authorized activities related to national security, intelligence, and law enforcement. Financial institutions will also have access to beneficial ownership information in certain circumstances, with the consent of the reporting company. Those financial institutions’ regulators will also have access to beneficial ownership information when they supervise the financial institutions.

Where can you find the form to report?

The form is available on FinCEN’s beneficial ownership information webpage at www.fincen.gov/boi

Is a reporting company required to use an attorney or a certified public accountant (CPA) to submit beneficial ownership information to FinCEN?

No. But the forms can be complicated for some entities and, depending on your circumstances, you may find it easier to have an attorney or a CPA prepare and submit the form for you.

DISCLAIMER

Stanley Bronstein is a lawyer and a CPA, but he is not your lawyer or CPA unless and until he is hired by you as your lawyer and/or CPA. The information and opinions contained herein are just that, information and opinions intended to help you learn about and understand your filing requirements under the new Corporate Transparency Act. The information contained herein should not be considered to be the giving of legal advice or accounting advice, unless and until you hire Stanley Bronstein as your lawyer and/or CPA.