As many of you may have already heard, the Corporate Transparency Act of 2021 establishes new requirements for disclosing beneficial ownership information to the Department of the Treasury’s FinCEN.

This obligation commences on January 1, 2024, affecting various business entities, including sole proprietors, Limited Liability Companies (LLCs), and some S corporations.

Why Should You Care?

Transparency in business ownership plays a crucial role in deterring financial crime and safeguarding our financial system. This new regulation ensures accurate and accessible information about individuals ultimately controlling or benefiting from entities registered in the United States.

Who Needs to Report?

    • Existing businesses: Starting January 1, 2024, established companies will have until January 1, 2025 to file their initial beneficial ownership information report.
  • New businesses: Companies formed or registered on or after January 1, 2024, have 90 calendar days from the date of official registration or notice to submit their initial report.

What Information is Reported?

The report encompasses basic identifying details about yourself and any other individual with a 25% or greater ownership interest in your business. This includes names, addresses, and tax identification numbers.

Where to Find Resources and Assistance:

FinCEN provides comprehensive resources and guidance to help you navigate the reporting process. Visit their dedicated webpage at https://www.fincen.gov/boi-faqs#B_1 or call their toll-free helpline at 1-866-550-3676.

We’re Here to Help:

As your trusted bookkeeping and tax advisors, we are committed to supporting you through the reporting process. Feel free to reach out to us with any questions or concerns you may have. Make an appointment HERE.

Staying Proactive:

While the initial filing deadline for existing businesses is still a year away, proactively familiarizing yourself with the requirements and gathering necessary information ensures a smooth and timely reporting experience. Remember, new businesses formed after January 1, 2024, have a significantly shorter 90-day window to comply.

By staying informed and taking action, we can collectively contribute to a more transparent and secure financial landscape.