FAQ about FinCEN BOI required filing
What is the Corporate Transparency Act (CTA)?
The Corporate Transparency Act (CTA) is part of the National Defense Authorization Act for Fiscal Year 2021, aimed at combating money laundering, the financing of terrorism, and other illicit financial activities. It requires certain U.S. and foreign entities to report beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN).
Who needs to report under the CTA?
Corporations, limited liability companies (LLCs), and other entities created in or registered to do business in the United States must report beneficial ownership information unless they are specifically exempt. Exemptions are generally for entities already regulated or supervised by certain federal functional regulators, publicly traded companies, and entities that meet specific criteria demonstrating a low risk for money laundering or terrorist financing.
What information must be reported?
Entities must report identifying information about their beneficial owners, including name, date of birth, address, and an identification number (such as a driver’s license or passport number). A beneficial owner is anyone who, directly or indirectly, owns 25% or more of the equity interests in the reporting company or exercises substantial control over the company.
Are single-member LLCs required to file?
Yes, single-member LLCs are required to file unless they meet one of the exemptions specified by the CTA or FinCEN's implementing regulations.
How often must entities report?
Entities must submit an initial report upon creation or registration. After that, they must file an updated report within a specified period (as defined by FinCEN's regulations) after any change in beneficial ownership or company information occurs.
What are the penalties for non-compliance?
Failure to report or knowingly submitting false or incomplete information can result in civil and criminal penalties, including substantial fines and imprisonment.
How can entities file their reports?
Entities can file their reports through a FinCEN portal designed for this purpose. Detailed instructions and requirements for filing are available on FinCEN’s website.
When does the reporting requirement take effect?
The requirement for new entities to report beneficial ownership information began on January 1, 2024. Existing entities have a grace period to comply, and must file no later than January 1, 2025. If your company was created or registered on or after January 1, 2024, and before January 1, 2025, then it must file its initial beneficial ownership information report within 90 calendar days after receiving actual or public notice that its creation or registration is effective. If your company was created or registered on or after January 1, 2025, it must file its initial beneficial ownership information report within 30 calendar days after receiving actual or public notice that its creation or registration is effective
Where can I find more information?
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