How to Prepare for Beneficial Ownership Reporting

Published on: 02/07/2024 By: Gorfine, Schiller & Gardyn

In early January, the Department of Treasury announced that its Financial Crimes Enforcement Network (FinCEN) began accepting beneficial ownership information (BOI) reports.

The bipartisan Corporate Transparency Act, enacted in 2021 to curb illicit finance, requires many companies doing business in the United States to report information about the individuals who ultimately own or control them.

According to the Treasury Department press release, filing is simple, secure, and free of charge. Companies that are required to comply (“reporting companies”) must file their initial reports by the following deadlines:

  • Existing companies: Reporting companies created or registered to do business in the United States before January 1, 2024 must file by January 1, 2025.
  • Newly created or registered companies: Reporting companies created or registered to do business in the United States in 2024 have 90 calendar days to file after receiving actual or public notice that their company’s creation or registration is effective.

It’s important to note that BOI reporting is not an annual requirement. A report only needs to be submitted once, unless the filer needs to update or correct information.

Generally, reporting companies must provide four pieces of information about each beneficial owner:

  • Name
  • Date of Birth
  • Address
  • The identifying number and issuer from either a non-expired U.S. driver’s license, a non-expired U.S. passport, or a non-expired identification document issued by a State (including a U.S. territory or possession), local government, or Indian tribe. If none of those documents exist, a non-expired foreign passport can be used. An image of the document must also be submitted.

It’s even more important to note that a person who willfully fails to comply with BOI reporting may be subject to civil penalties of $500 per day and criminal penalties including a $10,000 fine and/or up to two years of imprisonment.

Following are key resources to help with your BOI reporting:

Please contact GSG here to learn more about how GSG can help you achieve compliance when it comes to BOI reporting to FinCEN.

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