Legal Services At The Intersection Of Business And Life

  1. Home
  2.  → Beneficial Ownership Reporting

Remaining In Compliance With The New Beneficial Ownership Reporting Requirements

Starting January 1, 2024, businesses must adhere to new guidelines issued by the Financial Crimes Enforcement Network (FinCEN) regarding filing a statement of beneficial ownership, identifying who owns the company and notifying FinCEN. The expanded rule, under the Corporate Transparency Act, will impact a wide range of businesses across the United States.

If you own a business that is required to submit a beneficial ownership information (BOI) report, our business and corporate law attorneys can provide the guidance you need to ensure you are in compliance with the new rules. For decades, business owners have trusted us when facing legal concerns or compliance questions. Our legal team has diverse experience with a wide range of business and regulatory compliance concerns. You can trust us to provide the guidance you need to succeed.

Understanding The New BOI Provisions

The Corporate Transparency Act is part of the Anti-Money Laundering Act of 2020 to prevent the use of American companies for illegal purposes and money laundering. The new BOI provisions under the CTA will require millions of companies across the country to provide the required information.

If your business is a reporting company, you must comply with these new regulations to avoid trouble down the line, such as expensive fines, late fees and jail time. However, some businesses, such as accounting firms and partnerships, are exempt from the new reporting requirements. Many nonprofits and entities that qualify as large operating companies are also exempt.

While the new rules go into effect on January 1, 2024, reporting companies have until 2025 to complete and submit their reports. New businesses formed after January 1 will have 30 days to submit their report.

Under the new requirements, businesses must provide a BOI report that includes:

  • The identifying information of the beneficial owners and company applicants. This should include the name, address and date of birth of each party
  • The passport, driver’s license or government ID of each party, including a photo of the document
  • The name of the reporting company

FinCEN will store this information in a secure, nonpublic database. Financial institutions can only access it with the consent of the reporting company.

Whether you are a new business owner or have years behind you, our attorneys can provide the guidance you need to ensure that you remain in compliance with all government regulations. By working with us early in the process, you can rest assured that you will not face expensive fines and legal trouble down the road.

Frequently Asked Questions

When new guidelines or regulations come out, business owners always have questions on how to remain in compliance with them. Our attorneys are here to answer your questions and help you understand the requirements. In the meantime, please see some answers to frequently asked questions about the new BOI reporting requirements.

Who is considered a beneficial owner?

Under FinCEN guidelines, a beneficial owner is a person who substantially controls the reporting company, directly or indirectly. The definition also applies to those who own or control a minimum of 25% of the ownership interests.

What is a company applicant?

A company applicant is someone who files the document that created or registered the business. However, it is important to note that only reporting companies created after January 1, 2024, must report their company applicants.

Do I have to report changes in the information I provide?

Yes. If there is a change in the information provided in your BOI report, you must complete an updated report within 30 days.

Do I have to file a new BOI report every year?

No. Unless there are changes in the information you provide, you do not have to re-file your report every year.

How do I file the report?

Starting January 1, 2024, you can file your BOI report electronically through FinCEN’s website.

Contact Us Today To Learn More

If you own a business in Tennessee or Kentucky, contact our attorneys to discuss these new regulations and if they apply to your organization. To schedule a consultation at our Clarksville or Springfield offices, call us at 931-650-5484 or send us an email.