New Federal Requirements for Business Owners
Important Update
To assist with fighting money laundering and terrorist financing, the Financial Crimes Enforcement Network (FinCEN) requires business entities to register their beneficial owners.
What You Need to Know
- FinCEN is a federal government bureau under the Department of the Treasury.
- Beneficial owners are the individuals who ultimately own or control the business.
- Businesses formed or registered before January 1, 2024, must file their initial report with FinCEN by January 1, 2025.
- Businesses formed on or after January 1, 2024, must file their report within 90 calendar days of formation.
- As of January 1, 2025, newly formed businesses must file their report within 30 calendar days of formation.
- There may be exemptions that apply to your business. If applicable, the reporting requirements do not apply to your business.
Prepare for Reporting
- In addition to reporting beneficial owners, information such as your business entity’s legal name, any tradename or DBA name, physical address, taxpayer identification number, and state or country where your business was first formed or registered will also be required.
Where to File
- Reports must be filed directly with FinCEN at www.fincen.gov/boi.
- The California Secretary of State cannot collect this information.
Failure to Report
- Failure to report beneficial owner information may result in significant penalties, including fines.
Takeaways:
- We encourage all business owners to review the requirements and ensure compliance to avoid any negative consequences.
- For questions/assistance, please contact FinCEN at:
- Phone: 1.800.767.2825
- Website: www.fincen.gov/contact
Other Useful Links for Business Owners:
- FinCEN Beneficial Ownership Information: www.fincen.gov/boi
- Frequently Asked Questions: www.fincen.gov/boi-faqs
- Introductory Video: www.youtube.com/watch?v=nx48tPUbRK0