JANUARY 2024 E-NEWSLETTER

 As of January 1, 2024, various business entities, including professional corporations, will be required to report certain ownership information to the United States Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN).  

Note: Many nonprofits are exempt from this reporting requirement and the requirement would not generally apply to most typical sole proprietorships. To determine whether your business entity falls under this new reporting requirement, please see FinCEN's FAQ or contact a private attorney specializing in business, nonprofit, or corporate law to obtain independent legal consultation.  

According to FinCEN, reporting companies (i.e. companies required to report certain ownership information, pursuant to this new law) must submit beneficial ownership information (BOI) reports to FinCEN electronically through an online filing system that can be accessed through FinCEN's website. 

 FinCEN further provides that reporting companies must submit their initial BOI reports in accordance with the following reporting timelines: 

• A reporting company created or registered to do business before January 1, 2024, will have until January 1, 2025 to file its initial BOI report; 
• A reporting company created or registered on or after January 1, 2024, and before January 1, 2025, will have 90 calendar days after receiving notice of the company’s creation or registration to file its initial BOI report; and 
• This 90-calendar day deadline runs from the time the company receives actual notice that its creation or registration is effective, or after a secretary of state or similar office first provides public notice of its creation or registration, whichever is earlier. 
• A reporting company created or registered on or after January 1, 2025, will have 30 calendar days from actual or public notice that the company’s creation or registration is effective to file its initial BOI report. (See FinCEN's FAQ at Question B.2.) 

Should there be a change in any of the information included in a reporting company's initial BOI report pertaining to the reporting company or its beneficial ownership, the company must file an updated report within 30 days of the change.   

BOI report forms can be accessed via FinCEN's Beneficial Owner Information webpage. 

Reporting companies with questions about beneficial ownership can reach out to FinCEN via its website. Alternatively, these companies may wish to obtain independent legal consultation regarding Corporate Transparency Act compliance from private attorneys specializing in business or corporate law.  

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