Dear Business Owner or Representative,
We would like to inform you of an important update regarding the Corporate Transparency Act (CTA), which requires all businesses to register their beneficial owners with the Financial Crimes Enforcement Network (FinCEN). This is a federal requirement aimed at combating money laundering and terrorism financing.
What is BOI Reporting?
Beneficial Ownership Information reporting is a new federal requirement designed to enhance transparency and reduce financial crimes. It requires certain companies to disclose information about their beneficial owners – individuals who own or control the company.
Who Must Report?
The BOI reporting requirement applies to “reporting companies,” which generally includes corporations, limited liability companies (LLCs), and other similar entities created or registered to do business in the U.S. by filing with their local secretary of state or a similar office.
However, some entities are exempt from this requirement, such as certain large public companies and tax-exempt organizations. (Learn more HERE.)
What to submit?
- Company legal name
- Any Trade Name or Doing Business As (DBA)
- Physical address (P.O. Box not sufficient)
- Jurisdiction in which it was formed or first registered (U.S. or foreign)
- Taxpayer Identification Number (TIN)
How to File
BOI reports must be filed electronically through FinCEN’s secure online filing system, which is available on their website. Importantly, this filing is free of charge.
BOI Filing Deadlines
The deadlines for filing BOI reports vary depending on when your company was created or registered:
– Companies created or registered before January 1, 2024: file by March 21, 2025.
– Companies created or registered in 2024: file within 90 calendar days of receiving notice of effective creation or registration.
– Companies created or registered on or after January 1, 2025: file within 30 calendar days of receiving notice of effective creation or registration.
Failure to comply with this new reporting requirement may result in significant penalties. Reports must be filed directly with FinCEN at https://www.fincen.gov/boi. Please note that the Secretary of State’s office is not collecting this information, nor do they have access to FinCEN’s records. For any questions or assistance, you can contact FinCEN at:
- Phone: 1-800-767-2825
- Website: https://www.fincen.gov/contact
We encourage you to review the requirements and ensure compliance to avoid any potential penalties.
Helpful Links for Business Customers
- FinCEN Beneficial Ownership Information - https://www.fincen.gov/boi
- Reporting Requirements FAQs - https://www.fincen.gov/boi-faqs
- Key Filing Dates - https://www.fincen.gov/sites/default/files/shared/BOI_Reporting_Filing_Dates-Published03.24.23_508C.pdf
- Introductory Video - An Introduction to Beneficial Ownership Information Reporting Requirements
- Beneficial Ownership Information Reporting Rule Fact Sheet - https://www.fincen.gov/beneficial-ownership-information-reporting-rule-fact-sheet
As timelines are important for updates, tracking, and reporting, it’s always a good idea to involve a professional advisor such as an accountant or attorney. Whether you're a bank customer or not, our solutions are here to support your success and simplify the compliance process. Let us help you stay ahead of regulatory requirements and focus on what matters most—growing your business. If you need a referral for a professional who can help you understand the implications of the Corporate Transparency Act and Beneficial Ownership Information, please contact us today.