Beginning January 1st, 2024, many companies in the United States will have to report information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN). FinCEN is a bureau of the U.S. Department of the Treasury.
What Companies Have to Report?
Companies required to report are called reporting companies. Reporting companies may have to obtain information from their beneficial owners and report that information to FinCEN.
Your company may be a reporting company and need to report information about its beneficial owners if your company is:
- A corporation, a limited liability company (LLC), or was otherwise created in the United States by filing a document with a secretary of state or any similar office under the law of a state or Indian tribe; or
- A foreign company and was registered to do business in an U.S. state or Indian tribe by such a filing.
What Companies Do Not Have to Report?
Twenty-three types of entities are exempt from the beneficial ownership information reporting requirements. These entities include publicly traded companies, nonprofits, and certain large operating companies.
Be sure to review FinCEN’s Small Entity Compliance Guide, which provides information to help small businesses comply with this reporting requirement.
How Do Companies Report?
Reporting companies will have to report beneficial ownership information electronically through FinCEN’s website.
- The system will provide the filer with a confirmation of receipt once a completed report is filed with FinCEN.
When Do Companies Need to Report?
Reports will be accepted starting on January 1st, 2024.
- If your company was created or registered prior to January 1st, 2024, you will have until January 1st, 2025, to report BOI.
- If your company was created or registered on or after January 1st, 2024, and before January 1st, 2025, you must report BOI within 90 calendar days after receiving actual or public notice that your company’s creation or registration is effective, whichever is earlier.
- If your company was created or registered on or after January 1st, 2025, you must file BOI within 30 calendar days after receiving actual or pubic notice that its creation or registration is effective.
- Any updates or corrections to beneficial ownership information that you previously filed with FinCEN must be submitted within 30 days.
