Congress enacted the Corporate Transparency Act in 2021. This law created a beneficial ownership reporting requirement as part of the government’s efforts to make it more difficult for criminals to hide or benefit from ill-gotten gains through shell companies or other complicated ownership structures.
Beginning on January 1, 2024, many companies will have to report information about their beneficial owners – the individuals who ultimately own or control the company. That’s why you may have also referred to it as Beneficial Ownership Information or “BOI”.
Companies required to report are called reporting companies and will have to report the required information to the Financial Crimes Enforcement Network (FinCEN). FinCEN is a bureau of the U.S. Department of the Treasury. Reporting companies will have to report beneficial ownership information electronically through FinCEN’s website.
Failure to do so may result in civil or criminal penalties or both.
We suggest that you consider consulting with legal counsel if you have questions regarding the applicability of the CTA’s reporting requirements and issues surrounding the collection of relevant ownership information.
Other BOI Resources of Interest:
An Introduction to Beneficial Ownership Information Reporting Brochure
One minute video from US Treasury on BOI
BOI Frequently Asked Questions
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