Starting in 2024, many entities created in or registered to do business in the United States will be required to report information about their beneficial owners – the individuals who ultimately own or control a company – to the Financial Crimes Enforcement Network (FinCEN). FinCEN has published a guide to help small businesses navigate the new rules for reporting beneficial ownership information (BOI).
The BOI reporting requirement is an initiative that came out of the Corporate Transparency Act of 2021 in an effort to crack down on money laundering. The rule applies to most companies, requiring them to report their BOI to FinCEN effective January 1, 2024. Companies created or registered to do business before January 1, 2024 must file their initial BOI report by January 1, 2025. Companies created or registered to do business on or after January 1, 2024 will have 30 days after receiving actual or public notice that the creation or registration of the business is effective to file their initial BOI reports.
The Small Entity Compliance Guide, detailing the BOI reporting rules, answering key questions, and providing tools to assist with compliance.
Six key questions in the guide include:
- Does my company have to report its beneficial owners?
- Who is a beneficial owner of my company?
- Does my company have to report its company applicants?
- What specific information does my company need to report?
- When and how should my company file its initial BOI report?
- What if there are changes or inaccuracies in reported information?
FinCEN is expected to provide additional guidance on how to submit BOI reports soon. The Small Entity Compliance Guide is available on FinCEN’s website.
If you have questions on the new BOI reporting rule, leave a comment below or feel free to contact me directly.