If you are an owner of a company, such as a limited liability company or a corporation, you will likely be required to comply with the Corporate Transparency Act, which went into effect on January 1, 2024.
If your company is subject to the Corporate Transparency Act, then you are a “Reporting Company” and you will need to make a determination as to who are the beneficial owners of your Reporting Company. A beneficial owner of a Reporting Company is an individual who either directly or indirectly: (1) exercises substantial control over the Reporting Company; or (2) owns at least 25% of the Reporting Company’s ownership interest.
Once you have determined the identity of the beneficial owners of your Reporting Company, you then need to provide the U.S. Department of Treasury’s Financial Crimes Enforcement Network (“FinCEN”) with a Beneficial Ownership Information Report (BOI Report). The BOI Report includes certain identifying information of each beneficial owner such as legal name, date of birth, social security number and home address. Each beneficial owner will also need to provide FinCEN with a copy of his or her government-issued photo identification.
The filing deadlines for the BOI Report depend on when the Reporting Company was formed. For all Reporting Companies that were formed before January 1, 2024, each beneficial owner must file a BOI Report by January 1, 2025. For all Reporting Companies that are formed between January 1, 2024 through December 31, 2024, each beneficial owner must file a BOI report within 90 days after the Reporting Company was formed. For all Reporting Companies that are formed on or after January 1, 2025, each beneficial owner must file a BOI Report within 30 days after the Reporting Company was formed. The BOI report can be filed online at https://boiefiling.fincen.gov/fileboir.
If you are unsure whether your company qualifies as a Reporting Company, who qualifies as a beneficial owner or have any questions at all relating to the Corporate Transparency Act, the Transactional Department at Cuddy & Feder LLP is here and ready to help.