A provision of the Corporate Transparency Act brings a new filing requirement for many small businesses - the Beneficial Ownership Interest Report. Most companies that are/were formed through a filing with their Secretary of State or similar office (so corporations, S Corporations, LLCs, LLPs, and in some states, certain Trusts) must comply with the filing requirement. There are a variety of exceptions to filing, mostly tied to businesses that are already highly regulated. Penalties for noncompliance can be severe - penalties of up to $500 per day, criminal fine of up to $10,000, even potential jail time of up to two years.
The intent is to give the government another tool to fight financial crime, terrorism, money laundering, etc.
The form itself is fairly simple - it includes information about the company (name, ID#, physical address), along with similar information about the "beneficial owners" and officers of the company (anyone who owns 25% or more, plus those who exhibit substantial control or have the authority to control business operations). Also have to provide a copy of the owner's passport, driver license, or other approved, government-issued ID card.
If the company was in existence at the end of 2023, the filing is due by January 1, 2025. After the initial filing, you only file again if any of the original information changes (company relocates, owner/management changes, or someone moves to a new address); when that happens you have 30 days to file a report with the new information.
For companies formed in 2024, you generally have 90 days from date the entity was created to file the report (but if you start a new entity late in the year, you'll have less time....starting in 2025, you only have 30 days to file for a new company. As part of that rule, the 30 day time limit kicks in for anyone who has not yet filed as of 12/31/2024, so if you started a new company in, say, November or December 2024, your first filing would be due on 1/31/25.
The filing must be done online at the FinCen website.
The intent is to give the government another tool to fight financial crime, terrorism, money laundering, etc.
The form itself is fairly simple - it includes information about the company (name, ID#, physical address), along with similar information about the "beneficial owners" and officers of the company (anyone who owns 25% or more, plus those who exhibit substantial control or have the authority to control business operations). Also have to provide a copy of the owner's passport, driver license, or other approved, government-issued ID card.
If the company was in existence at the end of 2023, the filing is due by January 1, 2025. After the initial filing, you only file again if any of the original information changes (company relocates, owner/management changes, or someone moves to a new address); when that happens you have 30 days to file a report with the new information.
For companies formed in 2024, you generally have 90 days from date the entity was created to file the report (but if you start a new entity late in the year, you'll have less time....starting in 2025, you only have 30 days to file for a new company. As part of that rule, the 30 day time limit kicks in for anyone who has not yet filed as of 12/31/2024, so if you started a new company in, say, November or December 2024, your first filing would be due on 1/31/25.
The filing must be done online at the FinCen website.
