Do You Own a Business? Have You Filed Your Beneficial Ownership Information Report?

What is the Corporate Transparency Act (CTA)?

The Corporate Transparency Act (CTA) is a federal law enacted to enhance the transparency of business operations and combat financial crimes, including terrorism financing. Enforced by the Financial Crimes Enforcement Network (FinCEN), the CTA mandates that businesses with less than $5 million in gross receipts and 20 or less employees report their beneficial ownership information.

What is a Beneficial Ownership Information Report (BOIR)?

A Beneficial Ownership Information Report (BOIR) is the document businesses must file to comply with the CTA. The BOIR discloses detailed information about individuals who own or control 25% or more of the entity, known as beneficial owners. This report ensures that the actual individuals behind the business are transparent to regulatory authorities.

Information Required to File a BOIR

To File a BOIR, Businesses Need to Provide:

• Full Legal Name: The complete name of each beneficial owner.

• Date of Birth: The date of birth of each beneficial owner.

• Residential or Business Address: The current address of each beneficial owner.

• Identification Numbers: Unique identifying numbers from an acceptable identification document (such as a passport or driver's license).

Where to File the BOIR:

The BOIR is filed with the Financial Crimes Enforcement Network (FinCEN). Businesses can access the FinCEN BOI E-Filing System online at https://www.fincen.gov/boi to submit their reports. The filing process includes:

• Accessing the FinCEN BOI E-Filing System: Navigate to the FinCEN online portal.

• Completing the BOIR Form: Enter the required information into the online form or upload a completed PDF version.

• Submitting the Form: Once completed, submit the form through the FinCEN website. A confirmation receipt will be provided upon successful submission.

  
  

Deadlines:

• Existing Companies: Must file by December 31, 2024.

• New Companies: Must file within 90 days of formation or registration.

Conclusion:

The Corporate Transparency Act and the requirement to file a BOIR are significant steps toward increased transparency and accountability in the corporate world. By understanding and adhering to these regulations, businesses play a vital role in creating a secure and transparent economic environment.

Clark Esquire Group is here to answer your legal questions. Contact us at 732-930-3160.