In 2020, the U.S. Congress passed the Corporate Transparency Act to fight financial crimes, such as money laundering. This law requires the Financial Crimes Enforcement Network (FinCEN), a part of the U.S. Treasury, to keep a record of all U.S. businesses and their main owners.
On December 21, 2023, The Financial Crimes Enforcement Network (FinCEN) issued a final rule implementing the access and safeguard provisions of the Corporate Transparency Act (CTA) (the “Access Rule”). The Access Rule prescribes the circumstances under which beneficial ownership information (BOI) reported to FinCEN may be disclosed to authorized BOI recipients, and how it must be protected. The Access Rule reflects FinCEN’s commitment to creating a highly useful database for authorized BOI recipients while protecting this sensitive information from unauthorized disclosure.
This Access Rule follows the final BOI Reporting Rule FinCEN issued on September 30, 2022, which requires certain corporations, limited liability companies, and other similar entities created in or registered to do business in the United States to report to FinCEN information about themselves, their beneficial owners, and, in some cases, their company applicants to help authorized BOI recipients protect national security, enforce laws, and promote other policy objectives identified in the CTA.
Are You Required to File?
Companies required to report are called reporting companies. There are two types of reporting companies:
- Domestic reporting companies are corporations, limited liability companies, and any other entities created by the filing of a document with a secretary of state or any similar office in the United States.
- Foreign reporting companies are entities (including corporations and limited liability companies) formed under the law of a foreign country that have registered to do business in the United States by the filing of a document with a secretary of state or any similar office.
There are 23 types of entities that are exempt from the reporting requirements, please view them here in our frequently asked questions page FAQ. Carefully review the qualifying criteria before concluding that your company is exempt, or email us at info@fincenfile.org with any questions pertaining to your status.
Critical Deadlines and Consequences for Non-Compliance
- New Businesses: (Post-January 1, 2024): Required to file within 90 days of formation.
- Existing Businesses: Have until the end of 2024 (January 1 – December 31) to comply.
- Updates Required: Any changes in reported information must be updated within 30 days.
- Penalties: Non-compliance can result in a $500 daily fine and/or up to 2 years in prison.
Our Mission
We understand that federal filings are complex, and are committed to providing a straightforward and accessible solution for business owners and their advisors. Simplifying your process to always ensure compliance with ease and efficiency. We strive to make federal regulations clear and manageable for our clients. By providing expert advice and a smooth filing process, we help businesses launch their journey with compliance. Our goal is to take care of legal details, so businesses can concentrate on what they do best!
Contact
For more details on specific company requirements, please email us at info@fincenfile.org, or visit our Frequently Asked Questions page.