Effective January 1, 2024, many new and existing corporations, limited liability companies, partnerships, and similar entities will be subject to Federal requirements to report personal information of the entity’s beneficial owners to the U.S. Treasury Department.

The Financial Crimes Enforcement Network (“FinCEN“) recently published a Small Entity Compliance Guide (the “Guide“) to help small businesses comply with the new Beneficial Ownership Information (“BOI“) Reporting Rule. Bousquet Holstein PLLC previously published a more extensive alert regarding the law, who is required to report, and what information must be reported.

On January 1, 2024, FinCEN will start accepting BOI reports through a secure e-filing system. Entities created on or after January 1, 2024 will only have 90 days after receiving notice of entity creation from the state to file their initial BOI reports. Entities in existence prior to January 1, 2024, must make an initial report no later than January 1, 2025. Entities are required to report changes in beneficial ownership.

An entity’s willful failure to comply with the BOI Reporting Rule may lead to civil and criminal penalties for its principals, including imprisonment of up to two years and fines of up to $10,000.00.

The Guide is divided into six parts:

  1. Does my company have to report its beneficial owners?
  2. Who is a beneficial owner of my company?
  3. Does my company have to report its company applicants?
  4. What specific information does my company need to report?
  5. When and how should my company file its initial report?
  6. What if there are changes to or inaccuracies in reported information?