REMINDER: Beneficial Ownership Reporting (BOIR) Requirement Deadline is January 1, 2025

REMINDER: Beneficial Ownership Reporting (BOIR) Requirement Deadline is January 1, 2025

Do you own 25% or more of a Corporation, LLC?

If you own 25% or more of a Corporation, LLC (including single member LLC), or Partnership, you are now required to report your ownership to the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN). Entities starting in 2024 (January 1, 2024, and beyond) are required to report their Beneficial Ownership Report within 30 days of the entity’s formation/registration with the Secretary of State. Entities formed prior to January 1, 2024, must file these reports by January 1, 2025. If any of the reported information changes or a beneficial ownership interest is sold or transferred, the entity must report this new information within 30 days of the change or you can face penalties. This reporting requirement is part of the federal government’s anti-money laundering and anti-tax evasion efforts and is an attempt to look beyond shell companies that are set up to hide money.

For more information, visit the following Financial Crimes Enforcement Network (FinCen) website at:

https://www.fincen.gov/boi. You can file the report directly via this website.

Below are some frequently asked questions (FAQ’s) contained on the FinCEN website I felt were important. Please visit the website https://www.fincen.gov/boi for additional filing information.

• What is beneficial ownership information?

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

• Under the Corporate Transparency Act, who can access beneficial ownership information?

In accordance with the Corporate Transparency Act, FinCEN may permit access to beneficial ownership information to: Federal agencies engaged in national security, intelligence, or law enforcement activity;

State, local, and Tribal law enforcement agencies with court authorization; Officials at the Department of the Treasury; Foreign law enforcement agencies, judges, prosecutors, and other authorities that submit a request through a U.S. Federal agency to obtain beneficial ownership information for authorized activities related to national security, intelligence, and law enforcement; Financial institutions with customer due diligence requirements under applicable law (in order to facilitate compliance with those requirements); and Federal functional regulators or other appropriate regulatory agencies that supervise or assess financial institutions with access to beneficial ownership information (in order to supervise such financial institutions’ compliance with customer due diligence requirements).

FinCEN published the rule that will govern access to and protection of beneficial ownership information on December 22, 2023. Beneficial ownership information reported to FinCEN is stored in a secure, non-public database using rigorous information security methods and controls typically used in the Federal government to protect non-classified yet sensitive information systems at the highest security level. FinCEN will continue to work closely with those authorized to access beneficial ownership information to ensure that they understand their roles and responsibilities in using the reported information only for authorized purposes and handling in a way that protects its security and confidentiality.

• When do I need to report my company’s beneficial ownership information to FinCEN?

A reporting company created or registered to do business before January 1, 2024, will have until January 1, 2025, to file its initial beneficial ownership information report. A reporting company created or registered on or after January 1, 2024, and before January 1, 2025, will have 90 calendar days after receiving notice of the company’s creation or registration to file its initial BOI report. This 90-calendar day deadline runs from the time the company receives actual notice that its creation or registration is effective, or after a secretary of state or similar office first provides public notice of its creation or registration, whichever is earlier. Reporting companies created or registered on or after January 1, 2025, will have 30 calendar days from actual or public notice that the company’s creation or registration is effective to file their initial BOI reports with FinCEN.

• Will there be a fee for submitting a beneficial ownership information report to FinCEN?

No. There is no fee for submitting your beneficial ownership information report to FinCEN.

• How will I report my company’s beneficial ownership information?

If you are required to report your company’s beneficial ownership information to FinCEN, you will do so electronically through a secure filing system available via FinCEN’s BOI E-Filing website (https://boiefiling.fincen.gov).

• Is a reporting company required to use an attorney, certified public accountant, enrolled agent, or other service provider to submit beneficial ownership information to FinCEN?

No. FinCEN expects that many, if not most, reporting companies will be able to submit their beneficial ownership information to FinCEN on their own using the guidance FinCEN has issued. Reporting companies that need help meeting their reporting obligations can consult with professional service providers, such as lawyers, accountants, or enrolled agents.

• What information will be collected on filers?

When submitting the BOI report, individual filers should be prepared to provide basic contact information about themselves, including their name and email address.

 This information was compiled by Lisa Grossman Ben-Tal, Certified Public Accountant at (310) 922-6913.