Beneficial Ownership Information Reporting
Background
In 2021, Congress passed the Corporate Transparency Act which creates a new beneficial ownership information reporting requirement. This reporting requirement was established as part of the U.S. government’s efforts to make it harder for bad actors to hide or benefit from their ill-gotten gains through shell companies or other opaque ownership structures.
Many companies are now required to report information about the individuals who ultimately own or control them to the Financial Crimes Enforcement Network, a bureau of the U.S. Treasury
Reporting Deadlines
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.
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. 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.
Reporting companies 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 their initial BOI reports with FinCEN.
How to Report Your Company’s Beneficial Ownership Information?
If you are required to report your company’s beneficial ownership information to FinCEN, you will do so electronically through a secure filing system available via FinCEN’s BOI E-Filing website .
Penalties for Violating BOI Reporting Requirements
A person who willfully violates the BOI reporting requirements may be subject to civil penalties of up to $500 for each day that the violation continues. However, this civil penalty amount is adjusted annually for inflation.
A person who willfully violates the BOI reporting requirements may also be subject to criminal penalties of up to two years imprisonment and a fine of up to $10,000. Potential violations include willfully failing to file a beneficial ownership information report, willfully filing false beneficial ownership information, or willfully failing to correct or update previously reported beneficial ownership information.
Need Assistance With Filing BOI Report?
Archmore Group is happy to assist you with preparing and filing your BOI Report. Please contact us at info@archmoregroup.com to start the process.