In 2021, the Corporate Transparency Act was enacted by Congress. This law aims to make it more difficult for bad actors to hide or benefit from their illegal gains through shell companies or other opaque ownership structures. As part of this effort, many companies in the United States will be required to report information about their beneficial owners, i.e., the individuals who ultimately own or control the company by Congress. This reporting requirement came into effect on January 1, 2024, and the information will have to be reported to the Financial Crimes Enforcement Network (FinCEN), which is a bureau of the U.S. Department of the Treasury. 

FAQ

Who has to report?
Companies required to report are called reporting companies. Reporting companies may have to obtain information from their beneficial owners and report that information to FinCEN.

Who Does Not Have to Report?
Twenty-three types of entities are exempt from the beneficial ownership information reporting requirements. These entities include publicly traded companies, nonprofits, and certain large operating companies.

How Do I Report?
Reporting companies will have to report beneficial ownership information electronically through FinCEN’s website: www.fincen.gov/boi.
The system will provide the filer with a confirmation of receipt once a completed report is filed with FinCEN.

When Do I Report?
Reports will be accepted starting on January 1, 2024. If your company was created or registered prior to January 1, 2024, you will have until January 1, 2025, to report BOI. If your company was created or registered on or after January 1, 2024, and before January 1, 2025, you must report BOI within 90 calendar days after receiving actual or public notice that your company’s creation or registration is effective, whichever is earlier. If your company was created or registered on or after January 1, 2025, you must file BOI within 30 calendar days after receiving actual or public notice that its creation or registration is effective. 

Any updates or corrections to beneficial ownership information that you previously filed with FinCEN must be submitted within 30 days. 

Find more FAQs at www.fincen.gov/boi-faqs.

To view Beneficial Ownership Information Reporting Regulations and to find additional information, visit www.fincen.gov/boi.