Urgent Update About Beneficial Ownership Reporting
As part of the Corporate Transparency Act, the US Treasury announced a new mandate for all businesses to complete called Beneficial Ownership Reporting (BOI). In this article, we answer some frequently asked questions about the mandate.
For more information, visit the official government website, which offers answers to general questions, the reporting process, requirements, and penalties for failing to report. Below, we offer a summary.
What is Beneficial Ownership Information?
Beneficial ownership information refers to identifying information about the individuals who directly or indirectly own or control a company.
What companies will be required to report beneficial ownership information to FinCEN?
Companies required to report are called reporting companies. There are two types of reporting companies:
Domestic reporting companies are corporations, limited liability companies, and any other entities created by the filing of a document with a secretary of state or any similar office in the United States.
Foreign reporting companies are entities (including corporations and limited liability companies) formed under the law of a foreign country that have registered to do business in the United States by the filing of a document with a secretary of state or any similar office.
When do I need to report my company’s beneficial ownership information to FinCEN?
Any business created before January 1, 2024, will have until January 1, 2025 to file its initial beneficial ownership information report.
A business created or registered on or after January 1, 2024, and before January 1, 2025, will have 90 calendar days after receiving notice of the company’s creation or registration to file its initial BOI report. This 90-calendar day deadline runs from the time the company receives actual notice that its creation or registration is effective, or after a secretary of state or similar office first provides public notice of its creation or registration, whichever is earlier.
Reporting companies created or registered on or after January 1, 2025, will have 30 calendar days from actual or public notice that the company’s creation or registration is effective to file their initial BOI reports with FinCEN.
What are the penalties for not reporting?
“The willful failure to report complete or updated beneficial ownership information to FinCEN, or the willful provision of or attempt to provide false or fraudulent beneficial ownership information may result in a civil or criminal penalties, including civil penalties of up to $500 for each day that the violation continues, or criminal penalties including imprisonment for up to two years and/or a fine of up to $10,000. Senior officers of an entity that fails to file a required BOI report may be held accountable for that failure.”
“Additionally, a person may be subject to civil and/or criminal penalties for willfully causing a company not to file a required BOI report or to report incomplete or false beneficial ownership information to FinCEN.”
How do I file?
Will Marti Law Group File for me?
If we have previously set up an entity for you and you are interested in filing your BOI report, please reach out to our team to get more information on how we can help!