Attention – New Business Filing Requirement starting January 1, 2024
Starting January 1, 2024, most businesses will have to file a “Beneficial Ownership Information” report with the Financial Crimes Enforcement Network (FinCen). This requirement is based on the Corporate Transparency Act passed by congress in 2021. This is a new filing and is in addition to any filings you may already be sending into the FinCen.
Who needs to file:
This filing is for businesses to report information about their beneficial owners, i.e., the individuals who ultimately own or control the company.
When to file – initial filing:
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 was created or registered on or after January 1, 2024, and before January 1, 2025, 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. Some lawmakers are currently seeking a delay to these deadlines.
If your company is created or registered on or after January 1, 2025, you will need to file BOI within 30 calendar days after receiving actual or public notice that its creation or registration is effective.
When to file – subsequent filings:
Any updates or corrections to beneficial ownership information that you previously filed with FinCEN must be submitted within 30 days.
Some examples of this are:
- a change in beneficial ownership or officers at the company.
- a change would be a shareholder that is a minor reaching the age of majority.
What is reported:
For each beneficial owner and/or company officer you will need to provide:
- Full legal name
- Date of birth
- Complete current address
- Unique identifying number and issuing jurisdiction from, and image of, one of the following non-expired documents:
- U.S. passport
- State driver’s license
- An identification document issued by a state, local government, or tribe.
- If an individual does not have any of the previous documents, a foreign passport.
Non-Compliance:
The willful failure to report complete or updated beneficial ownership information to FinCEN, or the willful provision of or attempt to provide false or fraudulent beneficial ownership information may result in a civil or penalties, including civil penalties of up to $500 for each day that the violation continues, or criminal penalties including imprisonment for up to two years and/or a fine of up to $10,000.
Senior officers of an entity that fails to file a required BOI report may be held accountable for that failure.
Additionally, a person may be subject to civil and/or criminal penalties for willfully causing a company not to file a required BOI report or to report incomplete or false beneficial ownership information to FinCEN.
Next Steps:
- Log into the FinCen website to review the filing information that you need:
https://www.fincen.gov/sites/default/files/shared/BOI_Small_Compliance_Guide.v1.1-FINAL.pdf - File your report with the FinCen Agency
Note – this is not a tax return, business owners need to go online and make these filings, this will not be prepared as part of your tax returns. - You may want to inform your contractors and small business vendors about this requirement as well to protect them from being noncompliant.
Additional Help:
https://www.fincen.gov/boi-faqs
If you have any questions, please give the office a call.
Thank you,
The Cronin, Hanley, Van Zile & Lorenzo Team
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