Beneficial Reporting Requirement Is Now in Effect for Business Entities
The Corporate Transparency Act (CTA) came into effect on January 1, 2024, and requires all non-exempt companies to report Beneficial Ownership Information (BOI) about the individuals who ultimately own or control them to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN). This applies to almost every small and medium-sized business formed as a corporation, limited liability company (LLC), limited partnership, limited liability partnership, or similar entity.
Existing companies formed before January 1, 2024, will have until January 1, 2025, to file their initial BOI reports with FinCEN. A company formed on or after January 1, 2024, and before January 1, 2025, will have 90 calendar days after receiving notice of the company’s formation to file its initial BOI report with FinCEN. Companies formed on or after January 1, 2025, will have 30 calendar days from their formation to file their initial BOI reports. After any initial report filing, companies have 30 calendar days to report changes or correct inaccuracies to their previously filed information. The responsibility for providing accurate and current information rests with each reporting company.
FinCEN expects to publish additional guidance in the future which may aid any existing company that has a full year to file its BOI Report. So, you may want to wait until later in 2024 to file any initial BOI Report for an entity that existed prior to 2024.
Report Form:
A company’s Beneficial Ownership Information Report may be filed with FinCEN electronically by uploading a completed PDF or filling a web-based form via the BOI E-Filing System available online at: FILE BOIR
Instructions:
FinCEN has provided detailed BOI Report filing instructions at: HELP
FAQs:
FinCEN has also prepared responses to frequently asked questions (FAQs) relating to the new BOI reporting requirement, which are available at: BOI FAQs