As of January 1, 2024, the bipartisan Corporate Transparency Act (CTA) requires many companies operating in the United States to report information about their beneficial owners—the individuals who ultimately own or control the company. This law aims to combat illicit finance and strengthen U.S. national security.
Who Must File?
Companies required to comply, known as “reporting companies,” include most small businesses. If you own a small business, it is highly likely that this new reporting requirement applies to you. While certain entities are exempt from the BOI reporting requirements, it is crucial to carefully review the qualifications before determining exemption status.
Deadlines for Filing:
- Existing Companies: Reporting companies created or registered to do business in the U.S. before January 1, 2024, must file by January 1, 2025.
- New Companies: Reporting companies created or registered in 2024 have 90 calendar days from the effective date of creation or registration to file.
- New Companies (2025 and beyond): Reporting companies created or registered on or after January 1, 2025, must file within 30 calendar days of creation or registration.
Where and How Often to Submit BOI Reports:
- One-Time Reporting: Beneficial ownership information reporting is not an annual requirement. A report is only required initially or if there are updates or corrections to previously filed information.
- Simple and Secure Filing: Reports can be filed electronically via FinCEN’s secure e-filing portal. Filing is free of charge.
Why This Matters:
Failure to comply with BOI reporting requirements can result in civil or criminal penalties. Businesses should take steps now to determine if they must file and ensure timely compliance.
Need Help Understanding the Requirements?
At DBS Partners, we understand the importance of compliance for your business operations. While our firm does not file BOI reports, we are here to provide guidance and help you navigate the requirements.
For additional information, visit the FinCEN BOI Reporting Page.
