11/08/2024
ATTENTION SMALL BUSINESSES:
Starting in 2024, the Corporate Transparency Act (“CTA”) is mandating that any corporation, limited liability company, or other similar entity that was created in the United States by the filing of a document with the Secretary of State, report information about their beneficial owners to the Financial Crimes Enforcement Network (“FinCEN”). In short, the Act defines a beneficial owner as an individual who either directly or indirectly: (1) exercises substantial control over the company, or (2) owns or controls at least 25% of the company’s ownership interest.
There are exceptions to the reporting requirements, for example, some not-for-profit organizations are exempt. If you are uncertain, you should check with your accountant.
Our office will not be responsible for the preparation or submission of beneficial ownership information (“BOI”) reports to FinCEN. It is your responsibility to ensure that any required reporting of beneficial ownership information is timely filed with FinCEN as required by the CTA. The deadlines for filing the report are outlined below.
• Companies created before the January 1, 2024, will have until January 1, 2025 to file an initial BOI report (this includes companies that are now dissolved, but were in existence as of January 1, 2024)
• Companies created after January 1, 2024, will have 90 calendar days to file an initial BOI report
• Companies created after January 1, 2025, will have 30 calendar days to file an initial BOI report
Although you do not need to file a report each year, you have a continuing obligation to report any changes in beneficial information to the CTA in the future.
You can submit the report electronically at https://boiefiling.fincen.gov, or you can mail in a completed PDF version also available on the website. The report will require you to submit a photocopy of each beneficial owner’s identification card. There is no fee for submitting your BOI.
If you have questions, we encourage you to visit https://boiefiling.fincen.gov/help for step-by-step instructions on how to file the report, or seek qualified legal counsel experienced in this area.