Updated Dec. 11, 2024: Due to a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.
As of Jan. 1, 2024, the federal Corporate Transparency Act (CTA) requires almost all business entities to report their “beneficial owners” to the Financial Crimes Enforcement Network (FinCEN) of the U.S. Treasury Department. This new law is part of the National Defense Authorization Act and the Anti-Money Laundering Act.
Who is a Beneficial Owner?
A “beneficial owner” is defined as:
- Any individual who owns or controls 25% or more of the equity interests in the corporation or LLC, either directly or indirectly.
- Any individual who has substantial control over the entity.
What You Need to Do:
- For new entities formed after Jan. 1, 2024: Submit your Beneficial Ownership Information (BOI) to FinCEN within 90 days of formation.
- For existing entities formed before Jan. 1, 2024: Submit your initial BOI report by January 1, 2025.
- For entities formed after Jan. 1, 2025: Submit your BOI report within 30 days of formation.
Currently, there is no requirement for annual reporting. However, if there are any changes to your previously submitted information, you must file an updated or corrected report within 30 days of the change.
Questions? Contact us here.