New FINCEN Beneficial Ownership Information (BOI) Requirements – Is Your Business Affected?
Beginning in 2024, businesses will be required to comply with the Financial Crimes Enforcement Network's (FINCEN) new Beneficial Ownership Information (BOI) reporting rules. If you own or manage a business, you may need to file under these new regulations. This rule aims to increase transparency and prevent the misuse of anonymous entities for financial crimes such as money laundering.
Who Needs to File?
If your business falls into one of the following categories, you may be required to report beneficial ownership information:
Corporations formed in the U.S. including Corporations and S-Corporations
Limited Liability Companies (LLCs)
Limited Partnerships
If your business is privately owned and registered in the U.S., there's a strong chance that you are subject to the BOI reporting requirement. You must report individuals who own at least 25% of the business or who exercise significant control over the company.
What You Need to Do
For existing businesses formed or registered before January 1, 2024, you are required to report BOI information by January 1, 2025. If your business is newly formed or registered on or after January 1, 2024, you must file BOI information with FINCEN within 30 days of formation.
Failure to comply with these new regulations can result in significant penalties, so it’s important to act now if you think your business may be affected.
If you believe your business is affected by these regulations, we strongly recommend contacting your attorney or accountant who helped file your legal entity to ensure you comply with the new BOI requirements. They can guide you through the filing process and ensure everything is in order before the January 2025 deadline.
