New Federal Business Reporting Requirement

In 2021 Congress passed the Corporate Transparency Act. This law creates a new beneficial ownership information reporting requirement as part of the U.S. government’s efforts to make it harder for bad actors to hide or benefit from their ill-gotten gains through shell companies or other opaque ownership structures.

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

The Financial Crimes Enforcement Network (FinCEN) at the U.S. Department of the Treasury will permit Federal, State, local, and Tribal officials, as well as certain foreign officials, access to beneficial ownership information for authorized activities related to national security, intelligence, and law enforcement. Financial institutions will also have access to beneficial ownership information in certain circumstances, with the consent of the reporting company.

FinCEN will begin collecting beneficial ownership information in January 2024. Companies created or registered to do business before January 1, 2024, will have until January 1, 2025, to file an initial beneficial ownership information report. 

To learn more about this program and to register, please read this BOI FAQ provided by FinCEN. Questions about this requirement should be directed to your attorney or FinCEN.