01/08/2024
I rarely, if ever, post on legal issues on social media. I have not seen much information provided about these new reporting requirements, especially considering the potential penalties for non-compliance.
The Financial Crimes Enforcement Network of the US Department of Treasury (“FinCEN”) went into effect January 1, 2024.
With few exceptions, it requires corporations and limited liability companies (LLCs) to file a Notice of Beneficial Owner online. Here is a link for registration and information purposes: www.fincen.gov/boi
Generally speaking, companies existing prior to January 1, 2024 have until January 1, 2025 to register online. Companies created during 2024 have 90 days after creation to register. After December 31, 2024, companies will have 30 days after creation to register.
The fines for non-compliance are hefty, up to $500.00 per each day of non-compliance as a civil penalty. There is also a criminal aspect of up to 2 years of incarceration and/or up to a $10,000.00 criminal fine for criminal violations.
The Notice of Beneficial Owner Notice includes information about those persons who exercise substantial control over a reporting company; or who owns or controls at least 25 percent of the ownership interests of a reporting company.
Please contact your attorney or accountant if you have any questions.
I am submitting this information as a courtesy. It is not intended to give you specific legal advice. You should not consider it as such. I am not creating any client/attorney relationship with you by posting this information.
I will not be answering any questions through the comments section. If I represent you, please contact my office to discuss.
A final rule implementing the beneficial ownership information reporting requirements of the Corporate Transparency Act (CTA) was issued in September 2022. These regulations go into effect on January 1, 2024. Beneficial ownership information will not be accepted prior to January 1, 2024.
