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Beginning January 1, 2024, companies will need to report their beneficial owners as described in the Corporate Transparency Act which passed in 2021.
Governed by the Financial Crimes Enforcement Network (FinCEN), anyone who, directly or indirectly, owns or controls at least 25% of a company will need to furnish specific data electronically using a secure filing system via the FinCEN website.
There are 23 specific exemptions to filing (which can be found in detail at https://www.fincen.gov/boi).
Within the list of exemptions, there are some broad exclusions such as:
For entities that were created BEFORE January 1, 2024, the filing deadline will be January 1, 2025. For entities created AFTER January 1, 2024, you will need to report this information 30 days after creation.
While there is no fee for submitting the information, failure to submit can result in stiff penalties.
To ensure you are correctly filing this information, we suggest you reach out to your legal counsel as the rules can be tricky.
➡️ Have you heard about the new electronic filing requirements for 2024? Check out our guide here!
If you have any questions or would like additional information about anything mentioned, please comment below or email us at askus@lgt-cpa.com.