Beneficial Ownership Information Reporting Requirements

Companies must begin reporting information on the individuals who own or control the company to the U.S. Department of Treasury's Financial Crimes Enforcement Network (FinCEN).

FinCEN initiated the Corporate Transparency Act (CTA) in January 2024 to verify business ownership and to disrupt the financial anonymity that could enable crimes of corruption, drug trafficking, and terrorism.

Under the CTA, U.S. small business owners are required to file corporate transparency reports containing beneficial ownership information with FinCEN. FinCEN will securely store this data in a non-public database and provide it to law enforcement and other government agencies, as well as certain financial institutions, as needed.

The following companies are required to report their beneficial ownership information to FinCEN:

• Domestic reporting companies: Corporations, limited liability companies, and any other entities created by the filing of a document with a secretary of state or any similar office in the United States.
• Foreign reporting companies: Entities (including corporations and limited liability companies) formed under the law of a foreign country that have registered to do business in the United States by the filing of a document with a secretary of state or any similar office.

It's crucial to note that failure to file by the deadline could result in significant fines and even imprisonment.

Existingcompaniescreated or registered to do business in the United States before January 1, 2024, must file by January 1, 2025. Newly created or registered companiesto 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.

Additional information on Beneficial Ownership Information can be found on FinCEN's website, or by contacting FinCEN directly.

Other First Mid articles about Beneficial Ownership:

First Mid Ag - New Reporting Requirements for Beneficial Ownership Information for Businesses

First Mid Bank & Trust - Beneficial Ownership Information for Businesses

First Mid Agency Finance - What You Need to Know About BOI Reporting