IMPORTANT CURRENT UPDATES from FinCEN:
12/11/24 update: In light of a recent federal court order, reporting companies are not currently required to file beneficial ownership information with FinCEN and are not subject to liability if they fail to do so while the order remains in force. However, reporting companies may continue to voluntarily submit beneficial ownership information reports.
Beneficial Ownership Information
As of January 1, 2024, the bipartisan Corporate Transparency Act requires many companies doing business in the United States to report information about the individuals who ultimately own or control them. The law was passed to curb illicit finance and protect U.S. national security. Filing is simple, secure, and free of charge. Learn more about beneficial ownership reporting at www.fincen.gov/boi.
Companies that are required to comply (“reporting companies”) must file their initial reports by the following deadlines:
Existing companies: Reporting companies created or registered to do business in the United States before January 1, 2024, must file by January 1, 2025.
Newly created or registered companies: Reporting companies created or registered to do business in the United States in 2024 have 90 calendar days to file after receiving actual or public notice that their company’s creation or registration is effective.
Beneficial ownership information reporting is not an annual requirement. A report only needs to be submitted once, unless the filer needs to update or correct information.
IMPORTANT TO KNOW
Filing is quick, secure, and free, and most companies should be able to report without the help of an accountant or lawyer.
For companies with simple ownership structures, filing may take less than 20 minutes.
Unless a company needs to update or correct information, it is a one-time filing requirement.
**CAUTION** Use extreme care if contacted by a company offering assistance with filing your BOI with FinCEN. There is NO cost to file. There are known scams referencing Form 4022 or Form 5012 nor is there a US Business Regulations Department. Do not provide your personal information to anyone soliciting these services. If you need assistance, River City Federal Credit Union is here to help!
FAQs
What is the Corporate Transparency Act? The bipartisan Corporate Transparency Act, enacted in 2021 to curb illicit finance and protect U.S. national security, requires many companies doing business in the United States to report information to the Federal government about their beneficial owners—in other words, the real people who ultimately own or control them. The Financial Crimes Enforcement Network (FinCEN), a U.S. Treasury Department bureau, is implementing the law.
Who Needs to File? A company may need to report beneficial ownership information to FinCEN if it is:
a corporation, a limited liability company (LLC), or was otherwise created in the United States by filing a document with a secretary of state or any similar office under the law of a state or Indian tribe; or
a foreign company that was registered to do business in any U.S. state or Indian tribe by such a filing.
For more information about whether a company needs to file, visit fincen.gov/boi.
EXEMPTIONS
23 types of entities are exempt from the beneficial ownership information reporting requirements. These entities include publicly traded companies meeting specified requirements, many nonprofits, and certain large operating companies.
What information is needed to file?
Legal Name
DBA Names (if any)
Tax ID#
State filed
Business Address
Company Applicant Person involved in filing (if created after 2024)
Full Name, DOB, ID type, ID Number Image (Driver License, US Passport, Foreign Passport)
BOI Information
Owner
Email
Download the Transcript and save
FinCEN’s Small Entity Compliance Guide for beneficial ownership information reporting includes the following flowchart to help identify if a company is a reporting company (see Chapter 1.1, “Is my company a “reporting company”?”).
Who is a beneficial owner (BOI) of a company?
An individual who either directly or indirectly owns at least 25% of the business or exercises substantial control over the reporting company. Beneficial owners are individuals (natural persons). FinCEN expects every reporting company to have at least one beneficial owner either by ownership or by someone that is controlled substantially by one or more persons.
What is substantial control?
· Someone who is senior officer (president, CFO, general counsel, CEO, COO or any other person who performs similar functions).
· The individual has authority to appoint or remove officers or directors of the reporting company
· The individual is an important decision maker for the reporting company.
· The individual has another form of substantial control over the company
For further explanation, see the Small Entity Compliance Guide
Resources