CORPORATE TRANSPARENCY ACT AND BENEFICIAL OWNER REPORTS
The Corporate Transparency Act (CTA), which came into effect in 2024, requires US entities to disclose beneficial ownership information (BOI) to Financial Crimes Enforcement Network (FinCEN) – the regulatory arm of the US Treasury Department.
All LLCs and corporations, whenever formed, must file an initial BOI report before December 31, 2024. The information then has to be re-confirmed, or updated if applicable, annually. The penalties for missing the deadline include daily fines, and if a fraudulent filing is made, the filer may be subject to imprisonment. Even companies that have been dissolved are required to file, if they were still active companies for any period of time during the calendar year 2024.
The BOI report identifies:
-All ultimate beneficial owners of the company who have an ownership interest of 25% or more in the company; and
-If different, all persons with “substantial control” over the business (e.g. officers).
For companies formed in 2025, the BOI report will have to be filed within 30 days of company formation.
Instructions on filing the BOI report with FinCEN:
-Go to:https://boiefiling.fincen.gov
-Click “Get Started” on the BOI Reporting option.
-To access the online form, click “Prepare & Submit BOIR” in thesecond box, under “File Online BOIR”.
-Follow the step-by-step instructions on the questionnaire.
-When completed, click “Submit”.
-Keep a copy of the registration confirmation that is generated. We would appreciate it if you could send us a copy for our records.
If you have more than one LLC or corporation, you need to file a separate report for each entity.
Feel free to Contact Us if you need assistance.