Act Now: Beneficial Ownership Reporting Deadlines for Business Owners
As many of you may know, in 2021, Congress enacted the Corporate Transparency Act – a new anti-money laundering law that requires action by most business owners.
Starting in 2024, many businesses will be required to disclose their ownership; this will be accomplished by filing a Beneficial Ownership Information (BOI) report with the Financial Crimes & Enforcement Network (FinCEN).
Businesses created before January 1st, 2024, will have until January 1st, 2025 to file their initial BOI report.
Businesses created in 2024 will have 90 calendar days after initial registration to file their initial BOI report.
Any business created in 2025 will have 30 calendar days after initial registration to file its initial BOI report.
Failure to file the required BOI report or submitting erroneous information can result in a $500-per-day penalty.
Action will be required for any business that is considered a ‘reporting company’ – these can include (but are not limited to): LLCs, Partnerships, S-Corps, along with many other businesses that are registered with a Secretary of State. Tax-exempt entities & inactive entities are typically exempt from the BOI reporting requirements.
Since completing the BOI report requires sensitive, personal information for all business owners, it may be beneficial for each individual owner to obtain their own FinCEN ID – this is an ID number that FinCEN can use to identify an individual. This ID can be included on the form in place of personal information such as the individual’s social security number.
The BOI reporting & filing requirements can be completed online through FinCEN’s website: BOI E-FILING (fincen.gov). You will select the ‘File Online BOIR’ option and follow the instructions.
For additional resources & information, please refer to the following links:
FinCEN’s BOI homepage: Beneficial Ownership Information Reporting | FinCEN.gov
FinCEN’s Instructional Video (YouTube): Five-Minute Demo: How to File a Beneficial Ownership Information (BOI) Report (youtube.com)
Have questions or want to speak with our team directly? Contact us.
Claire Holmes, CFP®
Financial Planner
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