As a result of the CTA, most businesses will need to report their beneficial owners to the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN). Below are five key points you need to know about this requirement and how to fulfill it:
- Who Must File?
Nearly all domestic and foreign entities registered to do business in the U.S. are required to file a BOI report unless they qualify for an exemption. This includes LLCs, corporations, and similar entities. For details on exemptions, visit the FinCEN Guidelines.
- Who Are "Beneficial Owners"?
A beneficial owner is any individual who, directly or indirectly, owns or controls at least 25% of the company’s ownership or has substantial control over it. This includes officers and directors, so ensure all qualifying individuals are properly listed. Learn more about this in the CTA FAQs.
- When is the Deadline?
The deadline to file your BOI report is typically within 30 days of your entity’s formation or any substantial ownership changes. Businesses that were in existence before the rules went into effect (January 1, 2024) must file by January 1, 2025. Get detailed filing deadlines here.
- How to File?
Filings are made online through FinCEN’s BOI Reporting System. You’ll need to provide information about your business and its beneficial owners. We strongly recommend reviewing the system’s requirements before filing.
- What Happens If You Don’t Comply?
Non-compliance with the CTA can result in significant penalties, including fines up to $500 per day and potential criminal charges. To avoid these consequences, we recommend completing the filing as soon as possible. For more information, review the Compliance Details.