If You Have An Ownership Interest In A Business, You May Be Required To Register Your Ownership With The Federal Government
Congress passed the Corporate Transparency Act in 2021, establishing an affirmative reporting requirement if you hold a “beneficial ownership interest” (“BOI”) in many types of companies. Exempt from this reporting requirement are ownership interests held in publicly traded companies, nonprofit organizations, and certain large operating companies. This new federal government reporting requirement is often referred to by the acronym “FinCEN.” The government has created a BOI e–filing website where owners of companies can satisfy the reporting requirement by uploading their ownership information: https://boiefiling.fincen.gov.This federal government reporting requirement is separate and distinct from any filing requirements your company may have with state governments or tax authorities.
Companies established before 2024 have until the end of 2024 to file their BOI report. Acompany established during 2024 must file its BOI report within 90 calendar days after receiving (from the state of its incorporation or organization) actual or public notice that the company’s creation or registration is effective. After 2024, the registration period will shrink to 30 days aftera new entity’s creation.
More information about the reporting requirements under FinCEN can be found athttps://www.fincen.gov/boi, with an FAQ page at https://www.fincen.gov/boi-faqs#B_1
Also, be aware that scammers sometimes send out letters or emails that purport to be from the “United States Business Regulation Department,” or something similar, asking the recipient to pay them a filing fee under the Corporate Transparency Act, or be subject to severe penalties or imprisonment for noncompliance. These letters and emails are a scam. Actual reporting under FinCEN is free and is done through the https://boiefiling.fincen.gov website.
Steve Lewicky
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