Owning a business in the United States creates a great deal of responsibility and compliance with certain mandatory requirements for owners.
Did you know that following the latest regulatory standards might make your business safer and shield it from expensive fines? In this blog, we offer you key information to understand the new federal requirement to report beneficial ownership information (BOI), which is a mandatory requirement that companies must complete and where specific information about the business and its owners must be completed.
Although our mission is to simplify this regulation for you, remember that this information is not a substitute for professional advice. We encourage you to read on to find out everything you need to know but also to consult a specialist if you have any doubts.
Why must companies report Beneficial Ownership Information (BOI) to the U.S. Treasury Department?
This reporting comes as a result of the Corporate Transparency Act, passed in 2021 by Congress. The law specifies that companies must complete beneficial ownership information to control money laundering and illicit financing through shell companies or other business structures.
What is (FinCEN)?
The U.S. Treasury Department's Office of Financial Crimes Enforcement Network (FinCEN) is the agency that works to combat money laundering and other financial crimes that may be committed by business owners. The office requires businesses to have financial transparency and, for that reason, they must report their movements and transactions to the State.
What information is required from FinCEN?
When you start the online form www.fincen.gov/BOI, remember to have the required company documentation on hand to complete it without errors.
Basic information about the company:
Full legal name and trade name (Doing Business As, DBA)
Exact address.
Jurisdiction of incorporation
Taxpayer Identification Number (TIN)
Beneficial owners and/or stockholders:
Full name, date of birth, address, and identification number, and must include a valid U.S. passport, driver's license, or other identification document. Identification document issued by a state, local government, or tribe (if applicable).
Company Applicants:
These are the people who direct or control actions within the company, for example: Lawyers, and accountants, among others. (They must have basic and accurate personal information).
⚠️Note: All applicants of a company must be natural persons, companies or other legal entities cannot be considered as applicants.
When do I have to submit a report?
Reports are being accepted as of January 1, 2024.
Deadline for companies created before January 1, 2024: Reporting companies created or registered before this date will have until January 1, 2025 to file their initial BOI reports.
Deadline for companies created on or after January 1, 2024: Reporting companies registered on or after this date must file their initial BOI reports within 30 days after receipt of the notice of creation or registration of the company.
If you would like to receive more information about these requirements, sign up for the following link to receive updates from FinCEN so your company can receive important information and updates by email.
Which companies are required to report to the Financial Crimes Enforcement Network (FinCEN). ?
The companies that must report beneficial ownership information to FinCEN are Corporations, Limited Liability Companies (LLC), foreign companies and native tribal companies.
⚠️Important: Beneficial ownership information reported to FinCEN will be stored in a confidential database under maximum security control.
How to file the new federal beneficial ownership information (BOI) reporting requirement?
Filing the new beneficial ownership requirement is easy, safe and free for companies. Here are the most important links to help you complete the process quickly and easily:
Visit FinCEN's website, Here you can find the online form and information about the Reporting Rule and how to do it.
At the end of the application, the system automatically sends a confirmation receipt, informing you that the report has been successfully filed with FinCEN. It is important to know that this report must be submitted only once.
⚠️ Important: Companies must comply with the requirements outlined in the Reporting Rule. To give you compliance, FinCEN provides a Compliance Guide for Small Entities, designed specifically to help these organizations understand and meet the regulatory requirements effectively.
📍Click on this guide if you need more help:
📍If you have further questions click on the following link.
📍If you would like to contact FinCEN about any questions regarding BOI reports:
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Remember that this blog's content is for informational purposes only and is intended to help you better understand your business' legal obligations. Although we do our best to provide accurate data, we recommend you consult with an attorney or specialist to resolve specific questions. Any decision based on this content is your responsibility, and Universum is not responsible for any errors, omissions, or consequences derived from its use.
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