Beneficial Ownership Information Reporting

November 20, 2023 Posted by MBW

FinCEN, also known as the Financial Crimes Enforcement Network, was created on April 25, 1990 via order of the United States Secretary of the Treasury. Its mission “is to safeguard the financial system from illicit use, combat money laundering and its related crimes including terrorism, and promote national security through the strategic use of financial authorities and the collection, analysis, and dissemination of financial intelligence.”

As part of its mission, beginning on January 1, 2024, most entities will be required to comply with the Corporate Transparency Act (the “CTA”), which mean identifying foe the United State government who owns and controls the entity. Gone are the days of having an entity be a member or shareholder of another entity, without disclosing the individual information behind entity composition (i.e., names of natural persons).

The CTA will affect both domestic and foreign entities and specifically those that filed “a document with a secretary of state or any similar office.”

The reporting requirements are as follows: for entities formed prior to December 31, 2023, the reporting deadline is January 1, 2025; for entities formed on or after January 1, 2024, the reporting deadline is 30 days from the effective date of creation. Id. You may be asking yourself if you can file now, and the answer is no. FinCEN is not currently accepting any filings.

Additional information regarding the filing of Beneficial Ownership Information includes: (1) there will be no filing fee; (2) the filing will be done electronically via a secure platform on the FinCEN website; and (3) the filing does not need to be annually updated, only when the information in the filing has changed (i.e., a change in membership for a limited liability company). So what can you do in the meantime? You can make an appointment to speak to the attorneys at Mackey Butts & Whalen, LLP, who are ready to assist with the new requirements to comply with the CTA.

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