Companies that are required to comply (“reporting companies”) must file their initial reports by the following deadlines:
- Existing companies: Reporting companies created or registered to do business in the United States beforeJanuary 1, 2024 must file by January 1, 2025.
- Newly created or registered companies: Reporting companies created or registered to do business in the United States in 2024 have 90 calendar days to file after receiving actual or public notice that their company’s creation or registration is effective. Beginning in 2025, newly created or registered companies will have 30 days.
Beneficial ownership information reporting is not an annual requirement. A report only needs to be submitted once, unless the filer needs to update or correct information.
- What Is Beneficial Ownership Information?
- Basic identifying information about the individuals who directly or indirectly own or control a company.
- Why is it Required?
- In 2021, Congress enacted the bipartisan Corporate Transparency Act (CTA) to curb illicit finance. This law requires many companies doing business in the United States to report information about who ultimately owns or controls them to the Financial Crimes Enforcement Network (FinCEN), which is part of the U.S. Treasury Department.
- According to the CTA, more than 2,000,000 corporations and limited liability companies are formed under the laws of the States each year, and most States do not require information about the beneficial owners of the corporations, limited liability companies, or other similar entities.
- Who Has to Report?
- A reporting company is any entity that meets the “reporting company” definition and does not qualify for an exemption. Companies should consult the Small Entity Compliance Guide for details.
- How Do You Report?
- Electronically through FinCEN’s website: fincen.gov/boi.
- Filing is simple, secure, and free of charge. Most companies with simple ownership structures should be able to file on their own without the help of an attorney or accountant.
Helpful resources for businesses:
- For more information and to find out if reporting for your business is required to file, visit: Beneficial Ownership Information Reporting | FinCEN.gov
- Small business resources: Small Business Resources | FinCEN.gov
- Frequently Asked Questions (FAQs): Beneficial Ownership Information | FinCEN.gov
- Five Minute Demo: How to File a Beneficial Ownership Information (BOI) Report
- Sign up for updates: https://service.govdelivery.com/accounts/USFINCEN/subscriber/new
- Questions: Contact Us | FinCEN.gov
