As of January 1, 2024, the Financial Crimes Enforcement Network (FinCEN) has initiated the acceptance of reports on Beneficial Ownership Information (BOI) in accordance with the Corporate Transparency Act. This legislation, enacted in 2021, seeks to address illicit financial activities by mandating companies in the United States to disclose information regarding individuals with significant control over their operations.
Navigating these regulatory requirements can be complex, and at Briones Business Law Consulting, PC, we bring over three decades of legal experience exclusively tailored to the legal landscape effecting locally owned business owners to ensure a seamless and compliant process for your organization.
1. Understanding Beneficial Ownership: A Beneficial Owner, as defined by the Corporate Transparency Act, is an individual exercising substantial control over the company or owning a minimum of 25% of its ownership interests.
2. Information to Report: The report entails essential details such as legal names, addresses, Taxpayer Identification Numbers, and pertinent identification documents for both the company and the Beneficial Owner.
3. Filing Deadlines: Existing companies have a one-year window, while new entities established on or after January 1, 2024, are required to file within 90 days of creation. It's important to note that the window for new companies will be reduced to 30 days after January 1, 2025.
4. Consequences of Non-Compliance: Failure to comply with BOI reporting may result in civil and criminal penalties, in accordance with the Corporate Transparency Act.
5. Exemptions: Certain entities are exempt from BOI reporting requirements, including publicly traded companies meeting specified criteria, entities in heavily regulated industries, many nonprofits, and select large operating companies.
6. Filing Options: While companies can file directly through FinCEN's website, our law firm offers a streamlined alternative. We are pleased to provide comprehensive filing services to ensure a hassle-free process.
Should you have any inquiries or require assistance regarding exemptions or the filing process, please do not hesitate to reach out to us. We are dedicated to simplifying compliance and safeguarding your organization's interests. We look forward to the opportunity to assist you in meeting these regulatory obligations effectively.
Report for Business Owners in 2024: Read more about the New FinCEN BOI Report here: https://www.fincen.gov/boi