| Avoid the Penalties! Financial Crimes Enforcement Network’s New Beneficial Ownership Information Reporting Requirement for Businesses |
| The Federal Criminal Enforcement Network (FinCEN) has introduced a Beneficial Ownership Information Report (“BOIR”) requirement that affects all U.S. businesses. This mandate was designed to enhance transparency and combat financial crimes such as money laundering, fraud, and other illicit activities that may be linked to undisclosed business ownership. However, it applies to (almost) all business entities in the United States, including LLCs, PCs, PAs, PLLCs, Limited Partnerships, LLPs and Inc.’s, and it most likely applies to yours. As a business owner, you must be aware of the following requirements: – U.S. businesses must disclose comprehensive information about their ownership structure and their owners. This includes the identification of all beneficial owners, ownership percentages, proof of identity such as copy of each owner’s driver’s license or passport and specific personal information. Businesses will have an ongoing duty and must also continue to report and disclose any changes to the ownership information within very strict timelines (including a simple change of address) to avoid penalties. Deadlines for reporting: – For businesses in existence prior to January 1, 2024, the initial filing deadline for complying with this initial requirement is January 1, 2025. – For businesses created after January 1, 2024, the filing deadline is 90 days of the reportable event (formation). – Changes to the initial reported information must be reported within 30 days of the change. Failure to meet these deadlines or to provide accurate and complete information can result in severe penalties and legal consequences notably, up to $10,000 in fines and imprisonment up to 2 years (or 10 years in the event of certain concurrent criminal violations). Understanding the intricacies of this reporting requirement and ensuring compliance can be a complex and time-consuming process. You may self-report at https://boiefiling.fincen.gov/ Of course, your attorneys at Thrash, Carroll & Vanway Law Group are also willing to file this BOIR on your behalf. |
| Please contact our office at [email protected] to schedule an appointment to review your business entity’s reporting requirements. Thank you for continuing to entrust us with your legal needs. By: Thrash, Carroll & Vanway Law Group |