NEW CORPORATE TRANSPARENCY ACT REPORTING REQUIREMENTS
Starting on January 1, 2024, certain privately held companies in the United States will have to report information about their beneficial owners to the Financial Crimes Enforcement Network (“FinCEN”) as part of the Corporate Transparency Act. Any corporation, limited liability company, limited partnership, or other similar entity which was created or registered to do business in the United States will be required to file a beneficial ownership information report (“BOI Report”) unless they meet a specific exemption.
These reports can be filed by our firm, or directly or by the company using the secure filing system available via FinCEN’s website. For each individual beneficial owner, a reporting company will have to provide:
- Full legal name of the beneficial owner;
- His or her date of birth;
- His or her complete current residence address; and
- A photo of one of the following non-expired documents: U.S. passport, state driver’s license, or another identification document issued by a state, local government, or tribe, which provides a unique identifying number and issuing jurisdiction.
Properly reporting the required information on the BOI Report can be tricky, especially in situations where a beneficial owner hold interest in a company with a subsidiary, a brother/sister company, or other related companies. Violating the BOI reporting requirements will result in civil penalties of up to $500 for each day that the violation continues as well as criminal penalties of up to two years imprisonment and a fine of up to $10,000. Because of this, it is imperative that any companies with a reporting requirement file before the deadline. Reporting companies formed before January 1, 2024, will have until January 1, 2025, to file their initial BOI report. Reporting companies formed after January 1, 2024, and before January 1, 2025, will have 90 calendar days after registering the date of creation or registration to file its initial BOI report.
If you have any questions about BOI reporting requirements or would like our assistance with filing, please do not hesitate to reach out to our firm directly at (404) 365-5682.
