Beneficial Ownership Information Reporting is now Available with BOI FI

Yesterday, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) initiated the acceptance of beneficial ownership information reports. The bipartisan Corporate Transparency Act, enacted in 2021 to combat illicit finance, mandates many companies operating in the United States to disclose information about the individuals who ultimately own or control them.

Filing is straightforward, secure, and comes at no cost. Companies obligated to comply (“reporting companies”) must submit their initial reports by the following deadlines:

1. Existing companies: Reporting companies established or registered to conduct business in the United States before January 1, 2024, must file by January 1, 2025.
2. Newly created or registered companies: Reporting companies established or registered to conduct 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.

Beneficial ownership information reporting is not an annual requirement; a report needs to be submitted only once unless updates or corrections are necessary. Generally, reporting companies must provide four pieces of information about each beneficial owner:

– Name
– Date of birth
– Address
– Identifying number and issuer from either a non-expired U.S. driver’s license, a non-expired U.S. passport, or a non-expired identification document issued by a State (including a U.S. territory or possession), local government, or Indian tribe. If none of those documents exist, a non-expired foreign passport can be used, and an image of the document must also be submitted.

The company must also furnish certain information about itself, such as its name(s) and address. Additionally, reporting companies created on or after January 1, 2024, are obligated to submit information about the individuals who formed the company (“company applicants”).

FinCEN is dedicated to providing America’s small businesses with the resources and information they need to facilitate quick and easy filing. FinCEN’s Small Entity Compliance Guide guides small businesses through the requirements in plain language.