Attention Small Business Owners!
The Federal Corporate Transparency Act went into effect on January 1, 2024. Its purpose is to increase transparency in entity structures and ownership. It will help combat money laundering, tax fraud, and other illegal activities.
The Reporting Rule requires certain entities to file beneficial ownership information (BOI) reports to the Financial Crimes Enforcement Network (FinCEN). Reports contain information about the entity itself, and two categories of individuals: beneficial owners and company applicants.
- If your company already exists as of January 1, 2024, it must file its initial BOI report by January 1, 2025.
- If your company is created or registered to do business in the United States after January 1, 2024, then it must file its initial BOI report within 90 days after receiving actual or public notice that its creation or registration is effective. Small businesses are subject to fines if required reporting information is not completed.
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 criminal 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.
For more information on the Federal Corporate Transparency Act and BOI reporting, visit: https://www.fincen.gov/sites/default/files/shared/BOI_Small_Compliance_Guide_FINAL_Sept_508C.pdf [fincen.gov]
To report your information on beneficial ownership, visit: https://www.fincen.gov/boi [fincen.gov]
