New Federal Reporting Requirements for Some Companies
This blog is to make you aware of reporting requirements that went into effect on Jan. 1, 2024, that may require a business entity to report its beneficial ownership information (BOI) to the federal government. Beginning Jan. 1, 2024, many companies in the United States will have to report information about their beneficial owners (the individuals who ultimately own or control the company) and company applicants (the individual(s) who directly files or is primarily responsible for the filing of the document that creates or registers the company). They will have to report the information to the Financial Crimes Enforcement Network (FinCEN). FinCEN is a bureau of the U.S. Department of the Treasury.
Do I need to report?
Most businesses are small businesses that may need to file. Your company may need to report information about its beneficial owners if it is:
• A corporation, a limited liability company (LLC) or was otherwise created in the United States by filing a document with a secretary of state or any similar office under the law of a state or Indian tribe; or
• A foreign company and was registered to do business in any U.S. state or Indian tribe by such a filing. Some entities are exempt from reporting. The BOI Small Entity Compliance Guide as lists exempt entities. Exemptions are based on business type, company size and whether it is an inactive entity.
How do I report?
Reporting companies will have to report beneficial ownership information electronically through FinCEN. Jain Consulting can help you remain in compliance and do the reporting. Please reach out to us here if you wish to avail our service.
When must I report?
Reports will be accepted starting on Jan. 1, 2024.
• If your company was created or registered before Jan. 1, 2024, you will have until Jan. 1, 2025, to report BOI.
• If your company is created or registered on or after Jan. 1, 2024, and before Jan. 1, 2025, you must report BOI within 90 days of notice of creation or registration.
• If your company is created or registered on or after Jan. 1, 2025, you must report BOI within 30 days of notice of creation or registration.
• If there is any change to the required information about your company or its beneficial owners in a BOI report that your company filed, your company must file an updated BOI report no later than 30 days after the date on which the change occurred.
There are significant penalties for missing filing deadlines, including criminal (fines and/or imprisonment) or civil (monetary) penalties. There is a $500 per day penalty, up to $10,000, and imprisonment of up to two years for the willful failure to timely file initial or updated reports. It will be your exclusive responsibility to comply with CTA, including its BOI reporting requirements.
Jain Consulting can help you remain in compliance and do the reporting. Please reach out to us here if you wish to avail our service.
