Understanding Beneficial Ownership Information Reporting Requirements

Key Updates for Businesses and Owners in 2024

The Financial Crimes Enforcement Network (FinCEN) has implemented new reporting requirements. These relate to beneficial ownership information. FinCEN considers a beneficial owner as anyone with more than 25% ownership of a legal entity. So these new requirements impact a wide range of people and businesses. Here’s a simplified overview of what you need to know:

What Is Beneficial Ownership Information?

Beneficial Ownership Information is details about people who own or control a company. FinCEN requires this information to prevent illicit activities through opaque corporate structures.

Who Needs to Report?

Domestic Companies: Corporations and LLCs created in the U.S. by filing with a state office.

Registered Foreign Companies: Foreign entities registered to do business in the U.S.

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Exceptions: There are 23 types of entities exempt from reporting. These include publicly traded companies, nonprofits, and large operating companies. Visit FinCEN's site for the full list of exemptions.

Reporting Deadlines:

Existing Companies (before Jan 1, 2024): Must file their initial report by Jan 1, 2025.

New Companies (after Jan 1, 2024): Have 90 days post-registration to file.

No Annual Reporting is required: Only initial and updated/corrected reports as needed.

How to Report:

Reporting is done electronically through FinCEN’s BOI E-Filing website. No fee is required. This report can be filled by individuals authorized by the company. Reports can also be filled by third-party service providers.

What Information Is Required?

For the Company: Legal name, trade names, address, jurisdiction of formation, and Tax Identification Number.

For Beneficial Owners and Company Applicants: Name, date of birth, address, identification number, and an image of an identification document.

Compliance and Penalties:

Non-compliance may result in civil penalties and criminal charges. While existing businesses have the remainder of the year to file, we recommend doing so in a timely manner.