New Reporting Requirements for Small Business Owners
As of January 1, 2024, the bipartisan Corporate Transparency Act requires many companies doing business in the United States to report information about the individuals who ultimately own or control them. The law was passed to curb illicit finance and protect U.S. national security.
If you own a business operating in the United States you are now required to file details—to the Financial Crimes Enforcement Network (FinCEN), part of the U.S. Department of the Treasury. This new requirement is aimed at enhancing transparency and combating financial crimes, such as money laundering and tax evasion.
If your business falls under this new rule, here are the steps you need to take to comply:
Steps to Register with FinCEN:
- Identify Beneficial Owners: Determine who the beneficial owners of your company are. These are the individuals who own or control 25% or more of the business or have significant managerial control.
- Prepare Documentation: Gather required personal information about the beneficial owners, including their legal name, birth date, residential address, and a government-issued identification number (such as a driver’s license or passport number).
- Register Online: Submit this information to FinCEN via their secure online portal. You can visit fincen.gov/boi for more details on the registration process.
- Keep Records Updated: Any changes in ownership or control must be reported to FinCEN within 30 days, so it’s important to maintain accurate and up-to-date records.
For additional guidance or updates on this requirement, subscribe to FinCEN Updates to stay informed about future reporting guidelines.
Don’t wait until the last minute—ensure your business is prepared to comply with these new regulations and avoid potential penalties.
Filing is simple, secure, and free of charge. Learn more about beneficial ownership reporting at https://fincen.gov/boi.
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