Starting in January 2024, the Financial Crimes Enforcement Network (FinCEN) requires businesses to report information on beneficial ownership for the company as part of the Corporate Transparency Act of 2021. This bipartisan act was established to assist in preventing money laundering, terrorism, and various forms of corruption that endanger our economic wellbeing and national security. While reporting any information to a government agency may seem daunting, Kislay Shah CPA is here to assist you and your company to ensure accuracy and avoid fines associated with failure to report and reporting incorrectly.
Beneficial ownership information reporting entails filing with FinCEN to list all people who, directly or indirectly, (1) own at least 25% of the company or (2) have substantial control over the company. Someone who is seen as having substantial control can be a senior officer, those who have the authority to appoint/remove individuals, and those who make important decisions (such as finances, structure, and ventures) for a company. All entities that are registered to do business in the United States, domestic and foreign, that were existing before January 1st, 2024 must file before January 1st, 2025. And, any company that is established after January 1st, 2024 has 90 days to file after receiving notice of effective registration. While there are some organizations that are exempt from needing to file, such as credit unions, insurance companies, governmental authorities, and tax-exempt entities, most companies must complete the filing process.
Filing is completed online at https://boiefiling.fincen.gov. From there, the authorized individual chosen to file will select “File BOIR” and report the corresponding information. Filing is free and can be completed utilizing basic information. Reports will consist of:
- Company’s legal name
- Any trade names (DBAs or TAs)
- Address for the principal place of business
- Jurisdiction of formation
- Taxpayer Identification Number
- Beneficial owner information
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- Individuals name
- Date of birth
- Residential address
- Identifying number (Passport or driver’s license) with image
Information must only be submitted once unless an error is found or changes occur in ownership, interested parties, or business information. If the information needs to be updated, filing the new form must be completed within 30 days of the change. Willfully violating the business owner information report will cause the filer (or owner if they purposefully submitted wrong information) to be subject to fines (up to $500 per day of violation) and possible criminal penalties.
Keeping up to date with filing requirements in various fields of information for your business can be intimidating, but with Kislay Shah CPA, it doesn’t have to be. Contact us today for a free consultation to ensure timeliness and accuracy in filing for your business. You can reach Kislay Shah at kislay@scpaus.com or call 646-328-1326.