You may be aware that there is a new Corporate Transparency Act that becomes
effective 1/1/2024.
This affects almost every business entity.
Starting January 1, 2024, many companies will be required to report information to the
U.S. government about who ultimately owns and controls them, called Beneficial
Ownership Information (BOI) reporting. We had anticipated this would be extended
because there are issues with reporting requirements and information needed, however,
it does not appear to be the case.
Not filing can be considered a criminal or civil violation. Penalties can be assessed at
$500 per day up to $10,000 and can face 2 years prison time.
For new businesses (established after 1/1/2024): this new reporting requirement
MUST be filed within 90 days of formation. BOI Deadline Extension)
For new businesses (established after 1/1/2025): this new reporting requirement
MUST be filed within 30 days of formation.
- Day counter starts on either (1) date company receives notice that the
creation/registration is effective, OR (2) Secretary of State provides public notice
company has been created or registered, whichever is earliest.
For existing businesses (established before 1/1/2024): any changes in address,
ownership (including death) MUST be made within 30 days.
- To meet BOI requirement, form needs to be filed by 12/31/2024, or if there is a
change to the business, then the form needs to be filed within 30 days of the
change.
In general:
- Does not apply to sole proprietors, most trusts, or non-profits.
o A sole proprietor is NOT an LLC. An LLC is a legal entity and IS subject to
this reporting requirement.
This pertains to rental properties owned by an LLC.
o If a general partnership, please contact us for additional information. - PO Boxes are not allowed, must provide physical address(es).
- Must be filed electronically through FINCEN
- No extensions
- Requires photo ID OR unique identifier for each individual owner.
- For additional information and updates please view the FINCEN site link
Beneficial Ownership Information Reporting | FinCEN.gov
We recommend that each owner (yes, separate identifier for each spouse as applicable)
apply for a unique FinCEN identifier to protect your individual information.
How do I request a FinCEN ID?
Individuals may request a FinCEN identifier starting January 1, 2024, by completing an
electronic web form at https://fincenid.fincen.gov. Individuals will need to provide their
full legal name, date of birth, address, unique identifying number and issuing jurisdiction
from an acceptable identification document, and an image of the identification
document. After an individual submits this information, they will immediately receive a
unique FinCEN identifier.
Reporting companies may request a FinCEN identifier by checking a box on the
beneficial ownership information report upon submission. After the reporting company
submits the report, the company will immediately receive a unique FinCEN identifier. If a
reporting company wishes to request a FinCEN identifier after submitting its initial
beneficial ownership report, it may submit an updated beneficial ownership information
report requesting a FinCEN identifier, even if the company does not otherwise need to
update its information.
[Updated January 4, 2024]