As you are likely aware, reporting under the Corporate Transparency Act (“CTA”) became effective as of January 1, 2024. Given the CTA’s broad reach, many businesses are deemed “Reporting Companies” requiring registration with the US Department of Treasury’s Financial Crimes Enforcement Network (“FinCEN”). Registration requires the submission of a Beneficial Ownership Information Report (“BOI Report”) on such Reporting Company’s “Beneficial Owners.” Reporting Companies formed prior to January 1, 2024, must file their BOI Report with FinCEN on or before December 31, 2024. A Reporting Company’s failure to file a BOI Report could result in significant civil and criminal penalties.
You are responsible for ensuring compliance with the CTA, determining whether any entities are required to file BOI Reports, whether there is an applicable exemption, and ensuring that any beneficial ownership information provided to FinCEN in any BOI Report is complete and accurate. If you determine that a BOI Report is required, we encourage you to file this report with FinCEN as soon as possible to avoid any end-of-year delays in processing.
Please refer to https://www.fincen.gov/boi for the latest information as well as our prior Client Alert & FAQ for guidance. If you require assistance with regard to determining whether an exemption may apply, and/or determination of who the beneficial owners are, with respect to a particular entity (i.e., an entity with a complex ownership structure), please feel free to reach out to us no later than October 18, 2024, in order to ensure timely assistance with your request and to allow you to make any necessary filings prior to the end of the year.
You can file a BOI Report directly with FinCEN at https://boiefiling.fincen.gov/ or contact a third-party service provider to file the report on your behalf. Once filed, you remain responsible to stay informed regarding any changes to CTA rules, regulations, and requirements and update BOI Reports as required under the CTA.
Click here to read more about the Corporate Transparency Act (“CTA”).