Corporate Transparency Act Adds New Federal Reporting Req’s for Many Small Businesses
Beginning on January 1, 2024, many companies in the United States will have to report information about their beneficial owners (i.e., the individuals who ultimately own or control the company). Companies will have to report the information to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury.
On its website, FinCEN has provided guidance about the Beneficial Ownership Information (BOI) reporting requirements. There’s a section that includes Small Business Resources.
FREQUENTLY ASKED QUESTIONS
For a full list of FAQs, CLICK HERE.
- When do I need to report by?
A reporting company created or registered to do business before January 1, 2024, will have until January 1, 2025, to file its initial beneficial ownership information report.
- Who is exempt from the reporting requirement?
Every corporation, LLC, or other entity created by the filing of a document with a Secretary of State or similar office under the law of a state or Indian tribe is required to file a BOI report unless it qualifies for an exemption. There are 23 specific types of entities exempt from the reporting rule, including:
- State-licensed insurance producer
- Commodity Exchange Act registered entity
- Accounting firm
- Public utility
- Financial market utility
- Pooled investment vehicle
- Tax-exempt entity
- entity assisting a tax-exempt entity
- Large operating company
- Subsidiary of certain exempt entities
- Inactive entity
- Securities reporting issuer
- Governmental authority
- Bank
- Credit union
- Depository institution holding company
- Money services business
- Broker or dealer in securities
- Securities exchange or clearing agency
- Other Exchange Act registered entity
- Invested company or investment advisor
- Venture capital fund adviser
- Insurance company
- What information will a reporting company have to report about itself?
1) Its legal name; 2) any DBA names; 3) current street address of its principal place of business; 4) its jurisdiction of formation or registration; and 5) its Taxpayer Identification Number
- What information will a reporting company have to report about its beneficial owners?
1)The individuals name; 2) date of birth; 3) residential address; and 4) an identifying number from an acceptable ID such as a passport or US driver’s license, and the name of the issuing state or jurisdiction of ID.
FinCEN will continue updating the Beneficial Ownership Information page with additional guidance. The FinCEN website remains the best source of information for businesses that have questions about the federal reporting requirements.
More information about the Corporate Transparency Act is also available at the International Association of Commercial Administrators’ (IACA) website.
Stay tuned! This isn’t the last you’ll hear about the Corporate Transparency Act from the Springfield Chamber. Throughout 2024, you can refer back to the Chamber’s Small Business Solutions Hub for more information on reporting requirements, and where to get assistance.
