BENEFICIAL OWNERSHIP INFORMATION
Preparing for the Corporate Transparency Act
On January 1, 2024 a new reporting requirement under the Corporate Transparency Act goes into effect that will require businesses to file a Beneficial Ownership Information (“BOI”) Report with the U.S. Department of the Treasury, in an effort to crack down on money laundering. Here’s what you need to know:
Who Has to File a BOI Report?
Fincen estimates that more than 32 million companies will be required to file reports by the end of 2024. Most every corporation, LLC, or other entity formed with the Secretary of State (or similar office under the law of whatever state you’re in}(exemptions apply).
What Info About the Company Has to be Reported?
1) full legal name of the company, (2) DBA/FBN (if any), (3) current street address of the principal place of business, (4) jurisdiction of formation, (5) EIN, and (6) if the business was created after January 1, 2024, information about whoever formed the company.
What Info About the Beneficial Owners Has to be Reported?
(1) full legal name, (2) date of birth, ($3) current address, and (4) identification through either: (i) passport, (ii) state or local ID document, or (iii) driver’s license.
What’s the Filing Deadline for the Initial BO] Report?
A company created before January 1, 2024, must file no later than January 1, 2025. Acompany created on or after January 1, 2024, must file a report within 90 calendar days and a company created after January 1, 2025, must file a report within 50 calendar days of the date on which it receives actual or public notice that its creation has become effective.
What Are the Penalties for Non-Compliance?
Violations can result in a $591-a-day penalty (up to $10,000) and up to two years imprisonment! *
*-As of June 1,2024 and subject to change
