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WHAT IS BENEFICIAL OWNERSHIP INFORMATION?

• Beneficial ownership information refers to identifying information about the individuals who directly or indirectly own or control a company.

 

WHY MUST COMPANIES REPORT BENEFICIAL OWNERSHIP INFORMATION TO THE U.S. DEPARTMENT OF THE TREASURY?

Why must companies report beneficial ownership information to the U.S. Department of the Treasury?

• In 2021, Congress passed the Corporate Transparency Act on a bipartisan basis. This law creates a new beneficial ownership information reporting requirement as part of the U.S. government’s efforts to make it harder for bad actors to hide or benefit from their ill-gotten gains through shell companies or other opaque ownership structures.

 

BENEFICIAL OWNERSHIP NEW FILING REQUIREMENT

• You must file a Beneficial Ownership Report with the Financial Crime Enforcement Network if you own 25% or more of a domestic or foreign Limited Liability Company (LLC) or Corporation.

 

WHAT IS THE DEADLINE FOR FILING?

• If your LLC or Corporation was formed before January 1, 2024, the filing deadline is January 1, 2025.

• If your LLC or Corporation was formed after January 1, 2024, the filing deadline is within 30 days of formation.

 

HOW TO FILE?

• You can file directly with the Financial Crime Enforcement Network (FinCEN) website.

• The Paralegal Document Preparer can assist you with the filing.

 

WHAT ENTITIES ARE EXEMPT FROM FILING?

There are 23 exemptions Beneficial Ownership Information Reporting | FinCEN.gov

 

PENALTIES IF YOU DO NOT FILE.

• The civil penalty is $500 per day for a violation.

• Criminal penalties include fines up to $10,000 or 2 years imprisonment.