The Corporate Transparency Act, enacted in 2021, introduced a critical federal reporting requirement to combat illicit finance in the United States. Effective January 1, 2024, many U.S.-based companies must file Beneficial Ownership Information (BOI) reports with the Financial Crimes Enforcement Network (FinCEN). Here’s an overview of what this means for your business.
BOI reporting requires companies to disclose information about their beneficial owners—the individuals who ultimately own or control them. Filing is straightforward, secure, and free, with most companies only needing to submit the report once unless updates or corrections are required.
Your business may be required to file if it meets the following criteria:
However, 23 types of entities, including publicly traded companies, nonprofits, and large operating companies, are exempt. Review FinCEN’s Small Entity Compliance Guide to check if your business qualifies for an exemption.
Updates or corrections must be submitted within 30 days of a change.
BOI reports must be submitted electronically via FinCEN’s BOI Filing Portal. Upon submission, you’ll receive a confirmation of receipt.
FinCEN offers additional resources, including the Small Entity Compliance Guide, which provides detailed checklists and filing instructions. For the latest updates, sign up for email alerts from FinCEN.
This new reporting requirement is a significant step in promoting financial transparency and reducing the risk of illicit financial activities. Make sure your business stays compliant by filing your BOI report on time.
For a detailed overview, download the official FinCEN brochure: Beneficial Ownership Information Reporting Brochure (PDF).