You are required to file identifying information about beneficial owners, the individuals who directly or indirectly own or control your company, with the Financial Crimes Enforcement Network (FinCEN) to comply with the Corporate Transparency Act (CTA). The Beneficial Ownership Information Reporting Rule took effect on January 1, 2024. Reporting companies face critical deadlines this year, with severe penalties for non-compliance, including imprisonment and fines.
Under the Corporate Transparency Act, you must file identifying information about beneficial owners—those who directly or indirectly own or control your company—with the Financial Crimes Enforcement Network (FinCEN). The Beneficial Ownership Information Reporting Rule, which took effect on January 1, 2024, has important filing deadlines this year. Failure to comply can result in severe criminal and civil penalties, including fines and imprisonment, making it essential to understand and meet these new legal requirements.
A beneficial owner is an individual who directly or indirectly own or control at least 25% of the company’s ownership interests.
Compliance with the Beneficial Ownership Information Reporting Rule is critical because it supports the U.S. government's efforts to prevent companies from hiding ownership to engage in illegal activities. FinCEN has established a database to store beneficial ownership information. Failure to report can lead to severe civil and criminal penalties, including fines and imprisonment, making it essential for companies to meet the filing requirements and avoid legal consequences.
When to file Beneficial Ownership Information ?
You need to file Beneficial Ownership Information
90 days from the formation of the business
Frequently Asked Questions
Current as of 12/26/2024: BOIR is now voluntary based on a U.S. Court of Appeals decision vacating the motion to stay the district court's preliminary injunction enjoining enforcement of the CTA.
Prior rulings:
- 12/23/2024: BOIR is once again required and enforceable based on a U.S. Court of Appeals decision granting a motion for temporary stay of the district court's order and injunction.
- 12/3/2024: BOIR is voluntary following a federal district court in Texas granting a nationwide preliminary injunction, determining the CTA's reporting requirements are no longer enforceable.
- 1/1/2024: The BOIR rule requiring reporting of beneficial owners under the CTA became effective.
BOIR stands for Beneficial Ownership Information Report. It is a report that entities must file with the U.S. government to disclose their beneficial owners or individuals with significant control. This requirement helps increase transparency and prevent financial crimes like money laundering.
Most corporations, LLCs, and other entities formed or registered in the U.S. or doing business in the U.S. need to file unless exempt.
Beneficial owners are individuals who own 25% or more or have significant control over the company.
It's a federal requirement under the Corporate Transparency Act to prevent illegal activities like money laundering and terrorist financing.
Non-compliance can result in civil penalties of $500 per day and criminal penalties including imprisonment and/or fines.
No, the BOIR is not filed annually. It is filed once, with updates within 30 days of any changes.
Entities created before January 1, 2024, must file by January 1, 2025. Entities created after January 1, 2024, must file within 90 days of formation.
Yes, third parties like us Trademarkia can file on your behalf with authorization.