MANDATORY COMPLIANCE WITH THE NEW LAW BEGINNING: 2024

Is your small business ready to prove that it and you are who they say they are? Beginning January 1, 2024, entities must comply with the Corporate Transparency Act’s beneficial ownership reporting requirements. You will need to file with Financial Crimes Enforcement Network(FinCEN). The CTA and BOI report are part of the U.S. government’s attempts to crack down on financial crimes such as money laundering, tax fraud, financing of terrorism, and more. The CTA itself is part of the Anti-Money Laundering Act of 2020.

Who must file: (exceptions apply)

Qualifying business owners must file the BOI report with FinCEN – the U.S. Department of the Treasury’s Financial Crimes Enforcement Network. FinCEN issues instructions on who must file a report, when to file, and what information to include in the report. The reporting requirements are far-reaching. It’s not always clear what types of entities must file the BOI report. Based on current reporting rules, two types of entities are considered “reporting companies:” a domestic reporting company and a foreign reporting company.

When to file? Depends on entity formation date:

Depending on your company formation date, you will have either 30, 90 days, or until the end of year to comply with filing deadline. The countdown starts when you receive actual or public notice from the secretary of state or a similar office that your registration is complete.

FinCen Identifiers:

FinCEN identifiers ar unique identifying numbers that FinCEN gives to individuals or reporting companies upon request after providing specific information. It’s not a requirement, and an individual or reporting company may only request and receive one FinCEN identifier. The main reason for applying for the number is to make the overall process smoother. This makes it easier to comply with beneficial ownership reporting requirements and provides an extra layer of security for your personal information.

Penalties:

Failure to follow beneficial ownership reporting requirements can result in a $500-per-day fine, up to $10,000 total, and up to two years in prison. Additionally, disclosing BOI without authorization carries a $500-per-day fine, up to $250,000 total, and up to five years’ prison time.

Call us at 305-667-1478 so we can help you meet the requirements for filing your BOI reports.