New U.S. Law Requires Companies’ Beneficial Owners toFile a Report with the Financial Crimes Enforcement Network

Posted on by Lonergan Law Firm
As of January 1, 2024, most companies in the U.S. are required to report information about the company’s beneficial owners to the Financial Crimes Enforcement Network (FinCEN), which is a bureau of the U.S. Department of the Treasury. 
The purpose of this new law is to significantly reduce illicit activity facilitated through the formation of a business entity.

The purpose is for the U.S. economy, as well as the global economy, to be safer from security threats.

“The Corporate Transparency Act, through its beneficial ownership reporting requirements, provides the historic opportunity to unmask shell companies and protect the U.S. financial system from abuse by money launderers, drug traffickers, sanctioned oligarchs, and other criminals,” said Himamauli Das, Acting Director of FinCEN. “We are committed to making this transparency process as simple as possible, particularly for small businesses who may have never heard of or interacted with FinCEN before.”1

“Filing is simple, secure, and free of charge. Beneficial ownership information reporting is not an annual requirement. Unless a company needs to update or correct information, a report only needs to be submitted once,” the FinCEN website reports.”2

Their site answers all the pertinent questions.

“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.”2

“Who Does Not Have to Report?Twenty-three types of entities are exempt from beneficial ownership information reporting requirements, including publicly traded companies, nonprofits, and certain large operating companies.”2 Be sure to check the list by clicking this link Beneficial Ownership Information Reporting | FinCEN.gov and scrolling down to section C.2.

“How Do I Report? Reporting companies report beneficial ownership information electronically through FinCEN’s website: www.fincen.gov/boi.The system provides a confirmation of receipt once a completed report is filed with FinCEN.”2

What Is Your Business’ Reporting Deadline? “Companies that were created or registered to do business before January 1, 2024 are required to report by January 1, 2025.”3 “If your company is created or registered in 2024, 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.”4

Get all your questions answered by clicking Beneficial Ownership Information Reporting | FinCEN.gov.

Gaylene Rogers Lonergan 214-503-7509 | lonerganlaw.com | grogers@lonerganlaw.com

© Gaylene Rogers Lonergan and Lonergan Law Firm, PLLC, 2024. All rights reserved. This article is provided for educational reasons exclusively and is not meant to be construed as legal advice. The Lonergan Law Firm, PLLC, will represent you only after being retained and that agreement is made in writing. 

Resources1FinCEN Issues Initial Beneficial Ownership Information Reporting Guidance | FinCEN.gov2BOI Information Brochure (fincen.gov)3FinCEN posts guide to help small businesses with BOI reporting – Journal of Accountancy4BOI Information Brochure (fincen.gov)