What Business Owners Need to Do Now
The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has launched the Beneficial Ownership Information (BOI) Registry, and the deadline for many businesses to comply is fast approaching. As part of the Corporate Transparency Act (CTA), passed in 2021 to combat financial crimes, businesses are now required to report the identities of their beneficial owners.
Key Deadline Approaching:
- Existing Companies: Companies created or registered before January 1, 2024, must file their beneficial ownership reports by January 1, 2025—less than two months away.
- New Companies: Companies formed after January 1, 2024, have 90 days from their formation or registration to submit their reports.
What Information Must Be Reported: Businesses required to file must submit information about the individuals who own or control the company (beneficial owners). The following details are required for each beneficial owner:
- Full legal name
- Date of birth
- Residential or business address
- Identification number from a valid U.S. driver’s license, passport, or similar document
Additionally, companies created after January 1, 2024, must provide details about the individuals who formed the company, known as “company applicants.”
Why This Matters: This registry is a major step in preventing money laundering, terrorism financing, and corruption. By making ownership structures more transparent, it helps protect law-abiding businesses and strengthens national security.
Immediate Steps to Take:
- If your company was formed before January 1, 2024, you need to act now. Start gathering the necessary information to meet the upcoming January 1, 2025 filing deadline.
- For newly created companies: If your business was formed in 2024 or later, ensure that you file your beneficial ownership information within 90 days.
- Filing is simple, secure, and free: You only need to file once, unless there are changes to your beneficial ownership information.
As we near the filing deadline, we encourage our commercial clients to take immediate action.
For more details, visit FinCEN’s website.
